Stock/Shares
A stock, or share, is a small piece of ownership in a company. More specifically, it is a claim on the company equity.
Quick reference:
Also called: Equity, Securities. What it represents: A slice of company ownership.
Rights: Dividends, voting rights (if applicable). How to buy: Through a broker on the ASX.
Risk: Value can rise or fall.
Expanded explanation:
When you buy shares in a company, you are becoming a part-owner. That means you may receive a share of the profits in the form of dividends, and you may also benefit if the share price goes up. Shares can also fall in value, so there is always some risk.
Companies issues shares to raise money, and once listed, those shares are freely traded between investors on the ASX. This trading makes shares one of the most common ways for everyday Australians to invest.
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