Stock
Also called: equity, shares
A stock is a unit of ownership in a company. Owning stock gives you a share of the company's value and, usually, a vote and a claim on its profits.
Companies sell stock to raise money without borrowing. Once issued, stock trades between investors on an exchange, and its price moves with what buyers will pay and sellers will accept.
Investors make money from stock in two ways: the price rising (a capital gain) and dividends, cash the company pays out of its profits.
Example
If a company has 1,000,000 shares and you own 10,000, you own 1% of it.
In Journey Shares
In Journey Shares, each listed public figure has 200,000 play-money shares you can buy and sell, priced by supply and demand. →
Related terms
- Share: A share is a single unit of a company's stock.
- Ticker symbol: A ticker symbol is the short code of letters used to identify a stock on an exchange, like AAPL for Apple or TSLA for Tesla.
- Market capitalization: Market capitalization is the total value of a company's shares: the share price multiplied by the number of shares outstanding.
- Dividend: A dividend is a cash payment a company makes to its shareholders out of its profits, usually every quarter.
- Capital gain: A capital gain is the profit from selling an investment for more than you paid for it; selling for less is a capital loss.
Guides
Practise with $10,000 in play money
Free. No real money involved.
For learning only. This isn't financial advice.