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Trading and Investment Terms

Stocks

A stock is a general term used to describe the ownership certificates of any company.

A stock is a security that represents the ownership of a fraction of a corporation.

Stocks are securities that represent an ownership share in a company. 

For companies, issuing stock is a way to raise money to grow and invest in their business. 

 

For investors, stocks are a way to grow their money and outpace inflation over time.

 

When you own stock in a company, you are called a shareholder because you share in the company's profits.

 

There are two main types of stocks: 

Common: Common stock may pay dividends, but dividends are not guaranteed and the amount of the dividend is not fixed. 

Preferred: Generally do not have voting rights, though they have a higher claim on assets and earnings than the common stockholders. 

 

Other categories of stock that investors look at:

  1. Growth stocks
  2. Tech stocks
  3. Small-cap, mid-cap, and large-cap stocks

 

Public companies sell their stock through a 

the stock market exchange like:

Nasdaq 

New York Stock Exchange

 

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