--- title: Stock simply explained description: Stock ✓ English ✓ Example ✓ Score ✓ Definition ✓ Screener ⇒ Read now! image: https://blog.stocksguide.com/hubfs/Aktie%20US.jpg --- [![StocksGuideFianl](https://blog.stocksguide.com/hubfs/StocksGuideFianl.svg "StocksGuideFianl")](https://stocksguide.com/en) - [Portfolios](https://stocksguide.com/en/portfolios) - [Screener](https://stocksguide.com/en/screener) - [Charts](https://stocksguide.com/en/charts) - [Alerts](https://stocksguide.com/en/stock-metric-alerts) - Tools - Discover stocks - [Stock Screener](https://stocksguide.com/en/screener) - [Indices](https://stocksguide.com/en/indices) - [Sectors](https://stocksguide.com/en/sectors) - [Dividend-Topscorer](https://stocksguide.com/en/dividends-strategy/topscorer) - [Growth-Topscorer](https://stocksguide.com/en/high-growth-investing/topscorer) - [Levermann-Topscorer](https://stocksguide.com/en/levermann-strategy/topscorer) - Analyze stocks - [Charting](https://stocksguide.com/en/charts) - [Dividend Calender](https://stocksguide.com/en/dividends-calendar) - [Earnings Calender](https://stocksguide.com/en/earnings-calendar) - [Dividends-Strategy](https://stocksguide.com/en/dividends-strategy) - [Growth-Strategy](https://stocksguide.com/en/high-growth-investing/strategy) - [Levermann-Strategy](https://stocksguide.com/en/levermann-strategy) - Monitor stocks - [Dashboard](https://stocksguide.com/en) - [HGI Watchlist](https://stocksguide.com/en/high-growth-investing/high-growth-investing-watchlist) - [Aristocrats](https://stocksguide.com/en/dividend-aristocrats) - [Notifications](https://stocksguide.com/en/users/edit#notifications) - [Hig-Tech-Wikifolio](https://stocksguide.com/en/high-growth-investing/high-tech-stock-picking-wikifolio) - [Elite Dividend Stocks](https://stocksguide.com/en/continuity-toplists/listen) - [Blog](https://blog.stocksguide.com) - [Portfolios](https://stocksguide.com/en/portfolios) - [Screener](https://stocksguide.com/en/screener) - [Charts](https://stocksguide.com/en/charts) - [Alerts](https://stocksguide.com/en/stock-metric-alerts) - Tools - Discover stocks - [Stock Screener](https://stocksguide.com/en/screener) - [Indices](https://stocksguide.com/en/indices) - [Sectors](https://stocksguide.com/en/sectors) - [Dividend-Topscorer](https://stocksguide.com/en/dividends-strategy/topscorer) - [Growth-Topscorer](https://stocksguide.com/en/high-growth-investing/topscorer) - [Levermann-Topscorer](https://stocksguide.com/en/levermann-strategy/topscorer) - Analyze stocks - [Charting](https://stocksguide.com/en/charts) - [Dividend Calender](https://stocksguide.com/en/dividends-calendar) - [Earnings Calender](https://stocksguide.com/en/earnings-calendar) - [Dividends-Strategy](https://stocksguide.com/en/dividends-strategy) - [Growth-Strategy](https://stocksguide.com/en/high-growth-investing/strategy) - [Levermann-Strategy](https://stocksguide.com/en/levermann-strategy) - Monitor stocks - [Dashboard](https://stocksguide.com/en) - [HGI Watchlist](https://stocksguide.com/en/high-growth-investing/high-growth-investing-watchlist) - [Aristocrats](https://stocksguide.com/en/dividend-aristocrats) - [Notifications](https://stocksguide.com/en/users/edit#notifications) - [Hig-Tech-Wikifolio](https://stocksguide.com/en/high-growth-investing/high-tech-stock-picking-wikifolio) - [Elite Dividend Stocks](https://stocksguide.com/en/continuity-toplists/listen) - [Blog](https://blog.stocksguide.com) Search Search - [Contact Us](https://stocksguide.com/en/contacts/new) - [Contact Us](https://stocksguide.com/en/contacts/new) Search Search ![Stock simply explained](https://blog.stocksguide.com/hubfs/Aktie%20US.jpg) Jun 13, 2022 | [Knowledge](https://blog.stocksguide.com/topic/knowledge) # Stock simply explained A stock or share is a security that represents a share in a public limited company In addition to shares, other important types of securities are bonds (fixed-interest bonds). [Oscar Leistikow](https://blog.stocksguide.com/author/oscar-leistikow) Share - [mailto:?&subject=Stock%20simply%20explained&body=Stock%20simply%20explained%0A(https%3A%2F%2Fblog.stocksguide.com%2Fknowledge%2Fstock-simply-explained)](mailto:?&subject=Stock%20simply%20explained&body=Stock%20simply%20explained%0A(https%3A%2F%2Fblog.stocksguide.com%2Fknowledge%2Fstock-simply-explained)) - - - **Table of contents** 1. [What is a stock (security)?](https://blog.stocksguide.com/knowledge/stock-simply-explained#What-is-a-stock-security) 2. [Why do you buy stocks?](https://blog.stocksguide.com/knowledge/stock-simply-explained#Why-do-you-buy-stocks) ## **What is a stock (security)?** A stock is a security that represents a share in a public limited company. In addition to stocks, other important types of securities are bonds (fixed-interest securities), certificates, funds, ETFs and warrants. The easiest way to explain a stock is to use a fictitious example: Rendite Corp. is a public limited company. The founder of the company holds 100 percent of his company. This means that he still owns all the stocks in Rendite Corp.. However, he now wants to sell a stock of his company. You buy 200 of the 1,000 existing stocks. You now own 20 percent of the company. You are now a stockholder and co-owner of Rendite Corp.. ## **Why do you buy stocks?** Owning stocks in Rendite Corp. gives you certain rights. Firstly, the right to have a say at the company's annual general meeting. Secondly, the right to participate financially in the company's success. [Knowledge](https://blog.stocksguide.com/tag/Knowledge) ![Oscar Leistikow](https://blog.stocksguide.com/hs-fs/hubfs/Oscar%20Leistikow.jpg?width=70&name=Oscar%20Leistikow.jpg) ### Written By: Oscar Leistikow Oscar Leistikow holds a Master's degree in Controlling and is at home in the world of numbers thanks to his many years of professional experience in the finance department of a DAX-listed company. He is fascinated by the capital markets and is an enthusiastic private investor himself. His aim is to pass on his knowledge of shares and the stock market and to develop StocksGuide into a leading tool for private investors. ## You May Also Like ### [![Stock simply explained](https://blog.stocksguide.com/hubfs/Immaterielle%20Verm%C3%B6gensgegenst%C3%A4nde%20%F0%9F%87%BA%F0%9F%87%B8.jpg) *Apr 26, 2022 | Knowledge* Intangible assets simply explained](https://blog.stocksguide.com/knowledge/intangible-assets-simply-explained) ### [![Stock simply explained](https://blog.stocksguide.com/hubfs/Kursziel%20%5BEN%5D.jpg) *Jul 13, 2023 | Knowledge* Analyst Recommendations and Price Targets simply explained](https://blog.stocksguide.com/knowledge/analyst-recommendations-and-price-targets-simply-explained) ### [![Stock simply explained](https://blog.stocksguide.com/hubfs/Verschuldungsgrad%20%F0%9F%87%BA%F0%9F%87%B8.jpg) *Jun 13, 2022 | Knowledge* Debt Ratio simply explained](https://blog.stocksguide.com/knowledge/debt-ratio-simply-explained) [View more blog posts](https://www.example.com) [![StocksGuideFianl](https://blog.stocksguide.com/hubfs/StocksGuideFianl.svg "StocksGuideFianl")](https://stocksguide.com/en) Binzallee 30, Zürich 8055 © 2024 aktien.guide AG - StocksGuide - [Features](https://stocksguide.com/en/product) - [Plans](https://stocksguide.com/en/premium) - Company - [About](https://stocksguide.com/en/about-us) - [Contact us](https://stocksguide.com/en/contacts/new) - [Privacy Policy](https://stocksguide.com/en/privacy-policy) - [Imprint](https://stocksguide.com/en/imprint) - Discover Stocks - [Blog](https://blog.stocksguide.com) - [Earnings Calendar](https://stocksguide.com/en/earnings-calendar) - [Dividend Calendar](https://stocksguide.com/en/dividends-calendar) - [Stock Screener](https://stocksguide.com/en/screener) - [Elite Dividend Stocks](https://stocksguide.com/en/continuity-toplists/listen) - [Dividend Aristocrats](https://stocksguide.com/en/dividend-aristocrats) - [Stocks](https://stocksguide.com/en/stocks) - [Glossary](https://lp.stocksguide.com/glossary) **Disclaimer** aktien.guide AG assumes no liability for the information presented, its accuracy and completeness. 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