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  1. Knowledge
  2. ›Glossary
  3. ›Stock/Share

Portfolio

Stock/Share

A security that represents a share in the equity capital of a company, making the holder a part-owner entitled to dividends and voting rights.

A stock (also called a share) represents an ownership stake in a company. As a shareholder, you are a co-owner and entitled to profit distributions (dividends) as well as voting rights at the annual general meeting.

Shares are traded on exchanges. The price is set by supply and demand and reflects market participants' expectations about the company's future performance.

Over the long term, shares have historically delivered the highest returns among traditional asset classes, but they also carry higher risk than, for example, bonds or savings accounts.

Related terms

DividendBrokerage AccountMarket Capitalization

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