Definition: Stock is a piece of ownership of a corporation, known as a share. Since stocks are bought and sold on a daily basis, the price of a share of stock goes up and down depending on the demand for that particular share. Stock prices can therefore be affected by corporate earnings, public relations announcements, and the health of the US economy overall.
Owning a share of stock in a company also gives you a right to vote, and get a copy of the corporation's annual report in the mail. Many corporations also give stock holders dividend payouts.
Also Known As: shares
Examples: A good way to teach teenagers about the US economy is to buy them some shares of stock in a company whose products they like.
