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Glossary · Stock basics

Stock

A small slice of ownership in a company.

Why it matters

Owning a share means you own a fraction of the business: its future profits, its assets and its risks. The share price is what buyers and sellers agree that slice is worth today.

How to read it

Price alone says nothing about cheap or expensive. A $30 stock can be pricier than a $900 one. Compare price with what the business earns and is worth.

Related

TickerThe short code a stock trades under, like AAPL for Apple.Market capThe total value of all a company’s shares: share price times shares outstanding.Fair valueOur estimate of what one share is worth, based on the cash the business can produce.

In the Cluenex app, this explanation opens next to every stock figure, with the live reading for the stock you are looking at. Open it in Cluenex