What does Stock mean?

A stock (or "share") is a tiny slice of ownership in a public company — if a company has 1,000,000 shares and you own one, you own one-millionth of it.

A stock (or 'share') is a tiny slice of ownership in a public company. If a company is split into 1,000,000 shares and you own 1, you own one-millionth of it. Stock prices move every second as buyers and sellers agree on a new price.

Stock example

A company with 500 million shares is worth $50 billion at a $100 share price. Buy 10 shares for $1,000 and you own two-millionths of the business — a claim on a sliver of its profits and, often, a vote at its annual meeting.

Common beginner mistake

Judging a stock by its share price alone. A $20 stock isn't "cheaper" than a $400 one; what matters is the price compared with how much the company earns per share.