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Stock is also called share or a company’s equity, a stock is a financial instrument representing your ownership in a company or corporation. It represents your proportionate claim on a company’s assets and earnings; that is, on what it owns and generates in profits. When we talk about owing a stock in a company or corporation, we mean that you, as a shareholder, own a slice of the company equal to the number of shares held as a proportion of the company’s total outstanding shares. Let us say you own 200 shares of a company with 100,000 outstanding shares. You will then have a 0.2% ownership stake in this company.


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