Next video:
Loading the player...

Stocks are one of the most popular financial instruments in the world, but what does a stock actually represent? Find out how and why stocks are created, and what buying a stock means for investors.

Related Articles
  1. Trading

    Top Day Trading Instruments

    Day trading is an intense and often appealing activity. Investopedia provides the list of top financial instruments for day trading.
  2. Trading

    What's The Difference Between A Stop And A Limit Order?

    Find out what separates these two market orders and what they can do for you.
  3. Investing

    Texas Instruments Trades Ex-Dividend Thursday

    Texas Instruments will send its dividend payment on May 15 to shareholders of record as of May 1.
  4. Trading

    Futures Fundamentals

    This tutorial explains what futures contracts are, how they work and why investors use them.
  5. Managing Wealth

    Understanding Mortgage-Backed Securities

    Find out the meaning of this popular asset-backed security and its benefits for banks and investors.
  6. Trading

    Texas Instruments Stock: Good Entry Point for This Dividend Grower

    Given institutional accumulation signals, Texas Instruments shares could represent an opportunity for dividend seekers.
  7. Investing

    Buy High, Sell Much Higher

    Value investing may seem fool-proof, but it carries more risk than you might know.
  8. Investing

    What Is A Pyramid Scheme?

    Find out how this financial scam works and why you should watch out.
  9. Investing

    What Is Equity?

    Find out more on equity, and why this word has multiple meanings for everybody.
Hot Definitions
  1. Portfolio

    A portfolio is a grouping of financial assets such as stocks, bonds and cash equivalents, also their mutual, exchange-traded ...
  2. Gross Profit

    Gross profit is the profit a company makes after deducting the costs of making and selling its products, or the costs of ...
  3. Diversification

    Diversification is the strategy of investing in a variety of securities in order to lower the risk involved with putting ...
  4. Intrinsic Value

    Intrinsic value is the perceived or calculated value of a company, including tangible and intangible factors, and may differ ...
  5. Current Assets

    Current assets is a balance sheet item that represents the value of all assets that can reasonably expected to be converted ...
  6. Volatility

    Volatility measures how much the price of a security, derivative, or index fluctuates.
Trading Center