A share or stock represents ownership, or equity, in a corporation. When a company needs money to grow and expand, it may sell part of its ownership to the public in the form of shares of stock. In exchange for the money received from the sale, the company gives shareholders a portion of its profits as dividends, as well as a measure of its decision-making power. These securities generally have the most potential for capital appreciation, but their rights are subordinated in the event of a company liquidation or bankruptcy. It does not provide any assurance on returns.
