Stocks, also known as equities, are normally issued by a company as a fundraising tool. In other words, companies raise capital to fund their business – e.g. to raise money to allow the company to launch new products, expand or buy equipment – by selling shares of stock. When you purchase shares of stock in a company, you buy an ownership interest in that company, in the hope of getting a return on your investment.
|Represents ‘ownership’ in a publicly traded corporation or business.||Is a unit of measurement of your ownership interest in a company.|
|Does not tell you how much you own.||Tells you the exact amount you own.|
|Is not specific.||Represents a specific piece of ownership interest in a particular company’s stock.|