What Is Stock?

Feature Main Image

Stock is a security, issued in the form of shares, that represents ownership in a corporation. Companies issue stock to obtain funds to build their business. Since the average company has millions of shares outstanding (in the hands of the public), each share represents only a tiny interest in the company. Stock prices constantly change as investors bid the stock up or down based on many factors, but most importantly the company's ability to generate profits.

 
  • Quizzes
  • Word of the Day

    Paid-in Capital

    "Paid-in capital" refers to the capital a corporation receives from investors in...

  • TIP OF THE DAY

    Should I pay my mortgage bi-weekly?

    Paying one-half of your regular monthly mortgage payment every two weeks can shave...