How to Invest Your Money » Stocks

What Is A Stock?

What Is A Stock?

Many Canadians are investing in stocks through mutual funds, possibly chosen by their advisor. Even if you don’t invest directly in stocks, it’s still important to know what a stock really is.

Stocks represent individual shares in a company. When you buy a stock, you now own a fraction of that business. When the business achieves a profit, any earnings not retained by the company will be paid out to shareholders in the form of dividends.

You can also profit when selling the stock at a higher price than you originally paid; creating a capital gain.

This infographic created by Mint answers the question, what is a stock? Check back the next two Mondays for more investing infographics from Mint. (click image to enlarge)

Comments

  1. Janet Hutchins

    There is an irony here: this Infographic simplifies the whole stock process, yet it appears more complex than most people probably imagine it to be.

  2. Goerge

    First gold exploration has intersected 9.26 g/t gold over 31.13 m within a larger interval that averaged 4.65 g/t gold over 65.20 m.

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