What is Stock?

A stock (or share) is a small piece of ownership in a company.

Public companies sell shares that trade on exchanges such as the NYSE and Nasdaq. The price moves with supply and demand, which reflect investors' views on the company's future profits.

Why it matters to you

Over long periods stocks have historically grown faster than inflation, but prices can fall sharply in the short run.

FAQ

What is Stock?

A stock (or share) is a small piece of ownership in a company.

What is the difference between a stock and a share?

In everyday use they mean the same thing: a unit of ownership in a company.

Related terms

Market cap · Dividend · P/E ratio · Index fund · Earnings

All plain-English definitions → · Educational only, not investment advice.

Markets right now

SPY 778.10 ▼0.1% · QQQ 746.04 ▼0.7% · VIX 15.21 ▲2.5% · US10Y 5.24% ▼0.1% · DXY 102.37 ▼0.2% · GOLD 4,217.50 ▲0.6% · BRENT 105.53 ▼1.1% · WTI 92.56 ▼1.3% · BTC 83,507.72 ▲2.1% (last known, as of 2:17 AM ET; may be delayed)