Investing

Stocks

A stock represents an ownership interest in a company. Its value can change with the business and with what investors are willing to pay.

4 min

Investing 101 • 03

A stock is a piece of ownership in a company.

Buying shares makes you a shareholder.

The value of the shares can rise or fall.

Company results, expectations, economic conditions and investor sentiment can all influence the market price.

Stock investors can potentially benefit from

01A rising share price02Dividends paid by the company03Long-term business growth04Voting rights with some shares

Owning stock is different from lending money.

01

Stock

You own an equity interest in the company.

02

Bond

You lend money to an issuer under agreed terms.

Price changes affect the value of your holding.

Shares owned10
Purchase price$50 each
Starting value$500
If price becomes $40$400 market value

A strong company and a good investment price are not exactly the same question.

Investors can disagree about what a business is worth, which is one reason share prices move.

When you own a stock, pay attention to

01What the business does02How the company makes money03How much you paid04How concentrated your portfolio is

Remember this

A stock is ownership, not just a ticker symbol.

Its price is tied to a real business, but the market can value that business differently over time.

Lesson complete

Reviewed 2026-08-18

Sources

Ontario Securities Commission, GetSmarterAboutMoneyHow stocks and dividends work ↗Ontario Securities Commission, GetSmarterAboutMoneyTypes of investments ↗
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