The H. Kenneth Barker Center for Economic Education

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                                                              Stocks

Stock is a financial instrument that signifies an ownership position, or equity, in a corporation. Stock represents a claim, in its proportionate share, in the corporation's assets and profits. Stock is also referred to as equities or equity securities or corporate stock. Corporations use the issue of shares of stock as a primary means of acquiring capitol for business growth. Consumers invest in a company with the expectation that, as the company grows, stock will generate profits, called dividends, while held and later, when sold, can be sold for a profit. Stock can be purchased through the corporation of issue, through a licensed brokerage firm and other authorized institutions.

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