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Stock

A stock is an ownership interest in a corporation, with rights and economic claims determined by its share class and governing law.

Defined termReviewed 16 July 2026

Related terms

Market CapitalizationDividendFundamental AnalysisPortfolioCommoditySpot Market

Educational risk notice

This material is general education, not personal investment advice or a promise of results. Markets can move beyond planned levels, and losses can exceed expectations when leverage, liquidity, gaps, or operational failures are involved.

Read the full risk disclosure
Trading glossaryReviewed 16 July 2026

Definition

A stock is an ownership interest in a corporation, with rights and economic claims determined by its share class and governing law.

In market context

Common shares may provide voting rights and a residual claim on earnings or assets, while other classes can have different priorities or restrictions. Shareholders can benefit from price appreciation and dividends but can lose their entire investment if the business fails. Market price reflects expectations and trading conditions, not a guaranteed proportionate claim on cash immediately available from the company.

Source

Use the primary source for fuller regulatory or market context.

Investor.gov Glossary

Educational risk notice

This material is general education, not personal investment advice or a promise of results. Markets can move beyond planned levels, and losses can exceed expectations when leverage, liquidity, gaps, or operational failures are involved.

Read the full risk disclosure

Related glossary terms

Selected from explicit term relationships and shared tags.

beginner3 min

Market Capitalization

Market capitalization is the market price of one outstanding unit multiplied by the number of units counted as outstanding under the chosen methodology.

markets · valuationRead guide
beginner3 min

Dividend

A dividend is a distribution of cash, shares, or other property that a company or fund makes to eligible holders under declared terms.

stocks · incomeRead guide
beginner3 min

Fundamental Analysis

Fundamental analysis evaluates economic, financial, industry, and issuer information to estimate an instrument’s condition, prospects, or value relative to price.

analysis · strategyRead guide
beginner3 min

Portfolio

A portfolio is the combined set of cash, holdings, positions, and other financial exposures considered together for allocation, performance, and risk.

portfolio · reportingRead guide