What is Stock?
A share of ownership in a company.
A stock (or share) is a small slice of ownership in a company. Own one share of a company with a million shares, and you own one-millionth of it — including a claim on its future profits.
Stock prices move based on what buyers and sellers think a company is worth, which is driven by profits, growth, news, and plain human emotion.
Judge a company by its total value (market cap), not its per-share price. A $500 stock isn't 'expensive' and a $2 stock isn't 'cheap' without that context.
Related terms
Definitions from the Business Dog Glossary — educational, occasionally satirical, never financial advice.