Stock

A stock is a slice of ownership in a company. When the company grows and profits, your slice becomes more valuable — and as a part-owner you get perks like voting rights and sometimes dividends. Over long stretches, stocks have been the highest-returning mainstream investment, precisely because owning businesses is risky.

Example: Buy 10 shares at $150 ($1,500); if the company doubles in value over the years, your stake is worth roughly $3,000.