Glossary · Basics
Stock (Share)
A unit of ownership in a company.
A stock (or share) represents a slice of ownership in a publicly traded company. If you own shares, you own a tiny piece of that business and can benefit if the company grows — typically through price appreciation and, sometimes, dividends.
Stock prices move based on supply and demand, which is influenced by earnings, news, interest rates, and investor sentiment. Owning stock does not mean you manage the company day to day; it means you participate in its residual value as an equity holder.
Example
If a company has 1 million shares and you buy 100, you own 0.01% of that company.