Definition 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, your finances will also be affected negatively 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 partake.