Stock Investing — Novice: What Is a Stock?

A stock (or share) is a unit of ownership in a company. Own a share and you own a slice of that business — its assets, earnings, and future. Companies sell shares to raise capital; investors buy them seeking a share of growth and, sometimes, dividends.

Share prices reflect the market's collective view of a company's future prospects, which is why they move on news, earnings, and sentiment.

Key takeaways

• A share is fractional ownership of a real business.
• Returns come from price appreciation and/or dividends.
• Prices reflect expectations about future performance.

Educational disclaimer: This material is provided by Nieto Engineering Inc. for internal education only. It is not investment, financial, legal, or tax advice and is not a recommendation to buy, sell, or hold any asset. Cryptocurrency, equities, and prediction markets carry substantial risk, including total loss of capital. Past performance does not indicate future results. Always do your own research and consult a licensed professional before investing.