What is a stock?

A stock represents ownership of a piece of a corporation. It’s also referred to as equity, a share, or a security. Some stocks are privately held and unavailable to most investors, but others are listed on exchanges such as the New York Stock Exchange and Nasdaq where they can be bought and sold through registered brokerages like etoro. When you buy a stock, you essentially become a part owner of the underlying company. As the value of that company goes up or down, so does the value of your stock. Some companies may also pay dividends, splitting profit among stockholders.