A fuller guide to this term is on the way. In the meantime, the related terms below explain the ideas around it.
Related MoneyPedia terms
- ShareA single unit of ownership in a company; owning shares means you own a piece of that business.
- DividendA portion of a company's profits paid out to shareholders, usually as cash on a regular schedule.
- Stock MarketThe network of exchanges where shares of public companies are bought and sold by investors.
- EquityOwnership in a company, most often held as shares of stock that represent a claim on its assets and profits.
- Ticker SymbolA short set of letters that identifies a stock or fund on an exchange, like a name tag for trading.
- Capital GainThe profit you make when you sell an investment for more than you paid for it.
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Plain-English education — not personalized legal, tax, or investment advice.