What is a stock?

A stock represents a small share of ownership in a company.

When you buy a stock, you become a shareholder — meaning you own a portion of that company.

As a shareholder, you can benefit when:

The stock price increases, letting you sell at a profit, and/or

The company pays dividends, which are cash payouts from profits.

Example:

If you buy 10 shares of Apple, you own a small part of Apple. If Apple grows and its share price rises, the value of your investment increases too. ​