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)

Personal Finance Software – Mint.com

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Written by Tom Drake

Tom Drake is the owner and head writer of Canadian Finance Blog. While you’re here, consider signing up for the RSS feed or email subscription. Both deliver the latest articles directly to you everyday! Have a Twitter account? Then follow me for all the latest posts or to send me any comments or questions!

4 Responses to What Is A Stock?

  1. 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 says:

    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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