What is Equity in Business? Understanding the Basics for Beginners

When starting your journey into investing, one of the fundamental concepts you’ll encounter is “equity.” Understanding equity in business is vital, whether you’re considering investing in a company, starting your own business, or simply trying to make sense of financial news. Let’s break it down in a friendly and straightforward way.

【invest36.com】 What Does 'Stock' Mean in Business? A Friendly Guide for Beginners -JljBqlFQgA

2024-06-08 10:59 | 3 minute read

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What Does ‘Stock’ Mean in Business? A Friendly Guide for Beginners

Understanding the term “stock” is a fundamental step in your investment journey. So, let’s break it down in a friendly and straightforward way!

What is Stock?

At its core, stock represents ownership in a company. When you buy a share of stock, you are purchasing a small piece of that company. For example, if you buy stock in a company like Apple, you technically own a fraction of Apple. This ownership means you can benefit from the company’s growth and profits, primarily through capital gains and dividends.