CHARTTHREAD

Stock (share)

A stock, or share, is a small piece of ownership in a company. Common shares carry a vote and a claim on profits; preferred shares usually pay a fixed dividend first but carry no vote.

Companies sell shares to raise money and list them on a stock exchange, where investors and traders buy and sell them. Owning a share gives you a claim on the company’s profits, usually paid as dividends, and with common shares a vote at shareholder meetings. If the company fails, shareholders are paid last, after lenders. See also preferred share.

Learn more: which markets exist.