What is a Stock?

Stock is an equity investment. When you invest in a stock, you have an ownership stake in the company that issued it. An individual’s stock ownership represents his or her proportionate interest in a company. For example, if a company issues 100 shares of stock, each share represents 1/100, or 1%, ownership position in the company. A person who owns 10 shares of stock owns 10% of the company; a person who owns 50 shares of stock owns 50% of the company.

All investment carries risk. Past performance is not indicative of future returns, which may vary.  Investments in stocks and ETFs may decline in value, potentially leading to a loss of principal. Online trading has inherent risk due to system response and access times that may be affected by various factors, including but not limited to market conditions and system performance. An investor should understand such facts before trading.

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