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Fiveable

Stock

Definition

A stock represents ownership in a company and signifies a claim on part of its assets and earnings. Investors who own stocks are known as shareholders and have voting rights in certain company decisions.

Related terms

Dividend: A portion of profits distributed by companies to shareholders as cash payments.

Market Capitalization (Market Cap): The total value of a company's outstanding shares in the stock market.

Stock Exchange: A marketplace where stocks are bought and sold, such as the New York Stock Exchange (NYSE) or NASDAQ.

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© 2024 Fiveable Inc. All rights reserved.

AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.