Whats a stock?
Answer:
A type of security that signifies ownership in a corporation and represents a claim on part of the corporation's assets and earnings.
There are two main types of stock: common and preferred. Common stock usually entitles the owner to vote at shareholders' meetings and to receive dividends. Preferred stock generally does not have voting rights, but has a higher claim on assets and earnings than the common shares. For example, owners of preferred stock receive dividends before common shareholders and have priority in the event that a company goes bankrupt and is liquidated.
Also known as "shares" or "equity".
A holder of stock (a shareholder) has a claim to a part of the corporation's assets and earnings. In other words, a shareholder is an owner of a company. Ownership is determined by the number of shares a person owns relative to the number of outstanding shares. For example, if a company has 1,000 shares of stock outstanding and one person owns 100 shares, that person would own and have claim to 10% of the company's assets.
Stocks are the foundation of nearly every portfolio. Historically, they have outperformed most other investments over the long run.
it is an intrest in a company
It's the back piece of a gun, the part you rest against your shoulder.
It's a garden flower.
It's a heavily starched neckpiece that was worn in the 18th century.
It's the goods a store holds.
It's a liquid made up from meat or vegetable trimmings.
It's holdings in a company, which is why it's called a STOCK EXCHANGE not a SHARE EXCHANGE
WHAT SORT OF STOCK
A stock is part ownership of a company.
It's a portion of the value of a company. If you have one stock in Dell, you own one 600 billionth of the company (or less). If you own 10,000 shares (stocks) you own like 60 millionths of the company. If you were to own 51% of the stocks of a company (actually even 50.0001% or so would do it), you can actually make almost all the decisions because you own more than anyone else and have more "votes" in company policy.
a piece of paper
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