Learn · Securities
Stock
A stock is an equity security representing an ownership interest in a corporation, with rights determined by the share class and governing documents.
Plain-English definition: A stock is an equity security representing an ownership interest in a corporation, with rights determined by the share class and governing documents.[1]
How the term is used
Stockholders may benefit from price appreciation, dividends, or voting rights, but they stand behind creditors in the capital structure.[1]
What to check before relying on it
Confirm the issuer, class, exchange, currency, identifier, shares outstanding, and corporate actions. Delistings, mergers, ADR structures, and symbol reuse can break a naive historical series.
Example
Buying common stock gives an investor an ownership claim, not a contractual promise that the company will repay the purchase price or maintain a dividend.
Sources
- FINRA: Stocks — stock ownership, risks, dividends, and market terminology. Accessed October 24, 2026.