Stock
A stock is a share of ownership in a company.
Why this matters
Stocks can provide long-term growth, but prices can swing sharply in the short term.
Simple example
If you own shares of a company and it grows profits over time, your stock may increase in value.
Common mistakes
- Buying a stock without understanding the business.
- Putting too much money in one company.
- Confusing a great product with a great stock price.