A stock is a small piece of ownership in a company. If the company does well over time, the value of your share may rise, and some companies also pay out a portion of profits called dividends.
Example
If you own one share of a company and the company grows, your share may become more valuable. But if that one company struggles, your result suffers with it.
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Owning a stock means you own…
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Key takeaway
A stock is ownership in one company — more potential, more concentration.