What is a Stock?

A stock is ownership in a company.  When you buy stock in a specific company.  You become one of the owners of that company.  You are called a Shareholder.

You don’t get involved in the day-to-day operations of the company.  But you do get to vote on important company issues. And you can sometimes share in the company’s profits.

One unit of stock is called a Share.  The more shares you own, the more of the company you own.  The price of a share is called the Share Price.

As a shareholder, you want the Share Price to go up!  This means the value of the company and your investment goes up!  As a shareholder, you don’t want the share price to go down.  This means the value of the company and your investment goes down!

Remember, buying stock means you become an owner of the company.  So buy stock in companies you believe will succeed!

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