Stock

A stock is a unit of ownership in a company. Buying a share of stock makes an investor a part owner of that business, entitled to a proportional slice of its profits and, in most cases, a vote on major company decisions.

Stocks are traded on stock exchanges, where their price moves based on what buyers and sellers are willing to pay, driven by the company's performance, its growth prospects, and the broader mood of the market. Owning stock is different from owning a bond: a shareholder's return is not fixed or guaranteed, and shareholders are paid last if a company goes bankrupt, but they also get all the upside if the business does well.