Stock
Also known as: share, equity, Aktie
A stock is a share of ownership in a company. When you buy a stock, you own a small piece of that company. If the company grows in value, your stock grows too. If it declines, so does your share.
How do stocks work?
Companies issue stocks to raise capital. You buy them through a stock exchange via a brokerage account. Prices fluctuate daily — sometimes sharply. Long-term (20+ years), broadly diversified stocks have historically been the highest-return asset class.
Individual stocks vs. ETFs?
Individual stocks are risky — if one company performs badly, you lose a lot. An ETF bundles hundreds of stocks into one product and automatically spreads the risk. For most families, an ETF savings plan is a better choice than picking individual stocks.
BudgetHeld says
In BudgetHeld, you plan your investment budget under the Investing section. Whether you invest in individual stocks or ETFs is your decision — but the first step is always: plan a fixed amount in your budget.
Related tools
Budget Tool — Investing →Written by David El Dib — Financial expert & founder of MoneyTalk