Glossary · from the DESK dictionary
Stock
An ownership certificate in a company, typically carrying voting and dividend rights.
In plain words
Buying a stock makes you a part-owner of a company.
In more detail
Shareholders participate in profits (via dividends and price appreciation) and bear a proportional share of business risk — in bankruptcy, they are paid only after all creditors.
Example
Buying 10 Apple shares makes you a (very small) part-owner of the company.
What it means for traders
The most fundamental and best-known asset class there is.
Common pitfalls
No capital protection — a total loss looms in bankruptcy after all creditors are paid.
Related terms
American Depositary Receipt (ADR) · Common Stock · ETF (Exchange-Traded Fund)
From the DESK dictionary. For information only, not investment advice.
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DESK is a research tool and not investment advice. Page generated: 2026-10-12.