Basic

Stock: Definition

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Simple Definition

A tiny piece of ownership in a company.

Why It Matters

When you buy a stock, you become a real owner of that business. Apple made $100 billion last year - and if you own Apple stock, a tiny slice of that belongs to you. Stocks have historically returned about 10% per year on average, making them one of the best ways to grow wealth over time.

Key Points

  • You can start with as little as $1 through fractional shares
  • Stock prices change based on company performance and investor sentiment
  • You can make money two ways: selling for more than you paid, or receiving dividends

Learn More

Foundation Lesson

What Is a Stock?

Get a complete explanation with examples, key takeaways, and a quiz to test your knowledge.

Related Terms

Common Questions

A tiny piece of ownership in a company. When you buy a stock, you become a real owner of that business. Apple made $100 billion last year - and if you own Apple stock, a tiny slice of that belongs to you.

When you buy a stock, you become a real owner of that business. Apple made $100 billion last year - and if you own Apple stock, a tiny slice of that belongs to you. Stocks have historically returned about 10% per year on average, making them one of the best ways to grow wealth over time.

You can start with as little as $1 through fractional shares

Stock prices change based on company performance and investor sentiment

You can make money two ways: selling for more than you paid, or receiving dividends