FirstStepsInvesting

Decoder · Kinds of investments

Stock

A small piece of ownership in one company. If the company grows and earns more, your piece is usually worth more; if the company shrinks, your piece is worth less. One stock is one company's story — that is why beginners are taught about funds that hold many companies instead.

For your first $100: With $100 you cannot meaningfully own pieces of hundreds of companies one by one. That is exactly the problem funds were invented to solve.

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