Stocks

From Financial Literacy Wiki

Stocks are basically 'shares' of a company. When you buy a particular companies' share, you get a piece of every desk, filing cabinet, contract and sale in the company. Better yet, you own a slice of every dollar of profit that comes through the door. The more shares you buy, the bigger your stake in the company.

Stocks are the means by which companies obtain additional financing for their businesses - by selling off parts of their company to investors either through primary markets like IPO or through rights issue, share placement, Convertible Bonds or other means. The price of a stock can vary tremendously, from a couple of cents a share, to a few hundred dollars.