A stock represents ownership in a company and is a type of security that signifies an equity interest. When you own a stock, you essentially own a part of the company, including a share of its assets and profits. Stocks are bought and sold on stock markets, such as the New York Stock Exchange (NYSE) or the NASDAQ, and their prices can fluctuate based on market conditions, company performance, and economic factors. Investors can profit from stocks through capital gains, which occur when the price of the stock increases above the purchase price, and from dividends, which are payments made from the company’s profits to its shareholders.
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About the author
Jenna Lofton, MBA is a stock trading and investment expert with over a decade of experience in the financial industry. She began her career as a financial advisor on Wall Street and now helps everyday investors make smarter financial decisions through StockHitter.com.
Her insights simplify complex financial topics into actionable strategies for beginners and seasoned traders alike.