A stock in a company, commonly known as a ‘share,’ is a financial instrument representing a fractional share of ownership in a company. When you purchase a company’s stock, you become a shareholder. Investors buy stocks in the hope that the company will succeed. When the company performs well, its stock owners also share the success. The main benefit of an equity investment is the possibility of getting returns on the initial investment. These returns may be in capital gain, dividends, or both.
At the end of the course, you will be able to understand the following:
- What is a Stock?
- Types of Stocks.
- Stock Returns.
- Stock Trading.
- Stock Orders.
What is a Stock?
A stock is an investment. Investors purchase stocks in companies in anticipation that the stock value may go up in the future. If that happens, an investor may sell the stock to book profit or continue holding it for longer.