InsiderFlow › Glossary › 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.
On InsiderFlow you see which stocks the big funds and insiders are buying, with every move explained in plain language.
The price can fall to zero if the company goes bankrupt. That's why most investors diversify across many stocks or use ETFs.
A stock is ownership (you share profits and losses), a bond is a loan (you receive interest and your capital back at maturity).