Stock
A share of ownership in a publicly traded corporation.
What is Stock?
A stock (also called a share or equity) represents a unit of fractional ownership in a corporation. When a company issues stock, it divides ownership into millions of equal units and sells them to the public through a stock exchange. Stockholders are entitled to a proportional share of the company's assets and profits, and may receive dividends if the company distributes earnings. The price of a stock fluctuates based on supply and demand, the company's financial performance, and broader market conditions.
Example
Apple Inc. (AAPL) has approximately 15.2 billion shares outstanding. An investor who buys 100 shares owns a tiny but real fraction of Apple's assets, earnings, and future growth. If Apple reports record profits, demand for its stock typically rises and the share price increases, rewarding shareholders.
Source: Apple Inc. Investor Relations