1. Home
  2. Business & Finance
  3. Stocks

What is a Stock?

By , About.com Guide

Question: What is a Stock?
Answer: A stock represents a unit of ownership in a company. Most of the stock bought on the open market is "common" stock and carries the right to vote on important matters of the corporation including who serves on the board of directors.

If the company distributes profits, stockholders normally receive them in the form of dividends.

Explore Stocks
About.com Special Features

10 Things You Can Do Today to Improve Your Credit

Easy steps to take control of your credit card debt. More >

Holiday Central

What to eat, where to go, fun things to do and how to save money on the perfect gifts. More >

  1. Home
  2. Business & Finance
  3. Stocks
  4. Understanding Stocks
  5. Stock FAQ
  6. Stocks and Stock Market FAQ - Frequently Asked Questions about Stocks>

©2009 About.com, a part of The New York Times Company.

All rights reserved.