← Stocks & ETFs

Stocks & ETFs

What is a stock?

A stock represents an ownership interest in a company. The rights attached to that ownership depend on the share class and the company’s legal structure.

Ownership

Shareholders own a claim on part of the company after its obligations are accounted for. They may also have voting rights and can receive distributions if the company declares them.

Owning a share is different from lending money to the company.

Why prices move

Prices reflect what buyers and sellers are willing to pay based on expectations about earnings, cash flows, growth, risk and wider market conditions.

A good company and a good investment price are not automatically the same thing.

Return and risk

Stock returns can come from price changes and dividends. Both are uncertain.

Shareholders can lose some or all of their investment if the business performs badly or the market value falls.

General information only. Investment products can lose value, and terms, fees and regulation can change.