InsiderFlowGlossary › What is a stock?

What is a stock?

A stock is a share of ownership in a company: whoever holds it is a part-owner, sharing in profits and in the company's value.

When you buy a stock you own a small slice of the company. If the business grows and earns money, your slice tends to gain value; if it struggles, it loses value. Some companies pay out part of their profits as dividends.

Stocks trade on exchanges at a price that changes constantly, set by supply and demand. The price reflects investors' expectations about the company's future, not just past results.

Concrete example

If Apple has about 15 billion shares and you own 15 of them, you own one billionth of the company — tiny, but with the same proportional rights as the big funds.

How you see it in InsiderFlow

On InsiderFlow you see which stocks the big funds and insiders are buying, with every move explained in plain language.

Frequently asked questions

Is buying a stock risky?

The price can fall to zero if the company goes bankrupt. That's why most investors diversify across many stocks or use ETFs.

What's the difference between a stock and a bond?

A stock is ownership (you share profits and losses), a bond is a loan (you receive interest and your capital back at maturity).

Related terms

What is a dividend?What is market capitalization?What is an ETF?