Stock Market Ladder: What are shares of STOCKS?

Stocks are shares of ownership in a company. When you buy stocks of a publicly listed company, you become a stockholder or shareholder of a company. In other words, you become a part-owner of that company.

As a part-owner, you participate in the company’s growth and future profits. Conversely, you may also lose if the company suffers a loss or performs below market expectations.

The number of stocks you acquire will determine how big or small your ownership is. As you acquire more stocks, your ownership stake in the company becomes greater.

Other terms for stocks are “shares” or “equities”.

In Filipino, stocks are called “sapi”, which means to “join” or to “partake”.

Source: http://www.pseacademy.com.ph

Shares of Stock is equivalent to ownership. When you buy a share of stock you become a part owner of the company. By investing in the stock market you become an investor. You are slowly going to the right side of the cash flow quadrant. If you don't know what cash flow quadrant is, I encourage you to read the book of Robert Kiyosaki, "Rich Dad Poor Dad." There you will know about the Cash Flow Quadrant: Employed, Self-Employed, Business Owner, and Investor.