A stock, or share, represents a small ownership interest in a company. When a company issues shares, it is dividing ownership into units that can be bought and sold by investors on a stock exchange.
How investors may benefit
A stock can increase in price if the market values the company more highly. Some companies also distribute part of their profits as dividends. Neither price appreciation nor dividends is guaranteed.
What affects price
Company results, industry conditions, interest rates, news, and investor expectations can all influence a stock price. Learning the business behind a stock is as important as studying its chart.
