Basic Concepts
Stock
Share / Equity
Definition
A security representing ownership in a corporation
Explanation
When you buy a stock, you become a part-owner (shareholder) of that company. If the company makes money, you may receive dividends. If the stock price rises, you can sell for a profit. Companies issue stocks to raise capital, and investors trade them on stock exchanges.
Example
Buying 1 share of Apple = owning a tiny piece of Apple Inc.