Investing

What Are Stocks?

What are Stocks? Stock represents ownership of a corporation. Stockholders own a share of the company and are entitled to a share of the profits as well as a vote in how the company is run. Company profits may be divided among shareholders in the form of dividends. Dividends are usually paid quarterly. Larger profits can be made through an increase in the value of the stock on the open market. If the market value goes up, the gain can be considerable. Money is easily accessible. If market value goes down, the loss can be considerable. Selecting and managing stock often requires study and the help of a good brokerage firm.