Personal Finance: Investing in Stocks — Flashcards | Financial Literacy | FatSkills

Personal Finance: Investing in Stocks — Flashcards

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What is a a stock?

A stock represents an ownership stake in a company as a common shareholder.

Common stocks allow shareholders to vote on company issues, with most companies granting one vote per share.

Some companies also offer stockholders dividend payouts, giving investors a stream of income on top of the market value of the stock.
 

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Limited liability associated with stock ownership means that shareholders can only lose the amount of money they have invested in the company.
True
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