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.