What Exactly is Stock?
Stock is ownership in a piece of a corporation. To find out exactly what percentage of the company you own you divide the total outstanding shares from the total number of shares you own. Didyou realize when you purchase shares in a company you are getting a piece of the vote, assets, rights to dividends, and potential to lose value, but not liability if the company bankrupts or performs illegal or harmful actions? Remembering that a corporation is real will help prevent you from slipping from investing down to gambling. It’s easy to make crazy bets when the price per share isn’t attached to dollars and the company letters are little more than alphabet soup. You wouldn’t buy a house just because the price dropped today, it would actually have to fit your lifestyle and resources. Take the time to learn about stocks before you spend your savings.