Stock market basics · Beginner

What Is a Stock

A 1-minute lesson from the MarketPro academy, one of 18 in stock market basics.

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Short answer

A stock, also called a share or equity, represents a small unit of ownership in a company. When you buy a share, you become a partial owner of that business, with a claim on a proportional slice of its assets and future earnings.

A stock, also called a share or equity, represents a small unit of ownership in a company. When you buy a share, you become a partial owner of that business, with a claim on a proportional slice of its assets and future earnings.

Companies issue stock to raise money for growth—building facilities, hiring staff, developing products—without taking on debt. In exchange, investors receive the potential to benefit if the company becomes more valuable or profitable over time, though they also share in the downside if it does not.

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Step 1 of 10 on Stocks & Indices Basics

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