Stocks
Definition
Stocks represent ownership shares in a company. When you buy stocks, you become a partial owner and have the potential to earn profits through dividends and capital appreciation.
Related terms
Dividends: Payments made by companies to shareholders as a portion of their profits.
Market Index: A measurement that tracks changes in stock prices for specific groups of companies.
Initial Public Offering (IPO): The first sale of stock by a private company to the public.
"Stocks" appears in:
Additional resources (1)
AP Macroeconomics - Unit 4 Overview: Financial Sector
Practice Questions (1)
Which group may benefit from unanticipated inflation if they own assets such as real estate or stocks?
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About Us
About Fiveable
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Terms of Use
Privacy Policy
CCPA Privacy Policy
Resources
Cram Mode
AP Score Calculators
Study Guides
Practice Quizzes
Glossary
Cram Events
Merch Shop
Crisis Text Line
Help Center
© 2024 Fiveable Inc. All rights reserved.
AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.