Stock
A small share of ownership in a company.
A stock, or share, is a piece of ownership in a company. If the company grows and earns more, the value of your piece usually rises.
How you make money
Two ways: the share price goes up, and some companies pay part of their profits to shareholders as dividends.
The risk
A single company can stumble or fail. That is why most long-term investors spread their money across many stocks through index funds rather than betting on one.