Glossary
Stock
A stock is a unit of ownership in a company, which makes you a part owner of the business and comes with no promise of any payment.
Updated September 15, 2026
A stock, also called a share, is a unit of ownership in a company. If a company has issued 1,000 shares and you own 10, you own 1 percent of it. Owning stock makes you a part owner of the business rather than a lender, usually with a vote on company matters.
Stock comes with no promise of payment. Some companies pay out part of their profits as dividends, but none is required to, and dividends can be cut.
A stock's price is whatever buyers and sellers agree on, so it can rise or fall, and you can lose part or all of what you put in. If the company fails, shareholders are paid after everyone the company owes money to, and may get nothing. Stocks are bought and sold on stock exchanges, marketplaces that match buyers and sellers.
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How this definition was made
- Written by an AI model (Claude) following Teloria's editorial standard.
- Every factual claim was checked by a separate AI fact-check against official US government and regulator sources.
Official sources consulted
- investor.gov · /introduction-investing/investing-basics/glossary/stock
- investor.gov · /additional-resources/information/youth/teachers-classroom-resources/risk-and-return
- sec.gov · /pdf/quizansr.pdf
- investor.gov · /introduction-investing/investing-basics/investment-products/stocks
- investor.gov · /introduction-investing/general-resources/news-alerts/alerts-bulletins/investor-bulletins-84