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Financial Advisor Gaithersburg MD: What is a Stock?


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Gaithersburg, (301) 812-4608
Owings Mills, MD, (410) 363-4683
Washington, DC, (202) 299-1290

What is a Stock?

Our financial advisors can guide you in selecting the appropriate stocks for your portfolio, considering your goals and risk tolerance.  First, what is a stock? A stock is a share in the ownership of a company. When you own a stock in a company, you own a piece of the company’s assets and earnings. The amount of stock you acquire directly correlates with your stake in the ownership.

When you own stock in a company, that means you are a shareholder and that ownership often provides you with the right to vote on various company decisions. Now, you do not have a say in the day-to-day business of the company, but you do have a vote in the annual meeting to elect the board of directors of the company. Your financial advisor can often help you cast your vote, but they typically will not vote on your behalf.

Also, as a shareholder you are not personally liable for any losses by the company. If the company goes bankrupt, then all you lose is your investment. You will not be responsible for the debt, like some partnerships where the creditors can go after a partner’s house, car, etc. No matter what, you will never lose your own personal assets with investing in stocks. A financial advisor can describe the risks involved with investing in stocks.

If you need more information about stocks contact CIC Wealth today; our financial advisors are here to help.