Investing 101 — Owning a slice of a real company.
A share of stock is a small piece of ownership in a real company. If the company grows and prospers, owners share in that success.
Market capitalization: Share price times the number of shares. It reflects the market's view of a company's total size.
Stocks have historically delivered strong long term returns, but prices swing and nothing is guaranteed. That volatility is the price of admission for the higher potential return.
A stock split changes the number of shares and the price but not your total value. Two for one means twice the shares at half the price.
15 practice questions with explanations. Free, and no account is needed to start.