Points to know
- When you buy a company's stock, you become a part owner. You may benefit financially if the company succeeds—or face losses if it doesn't.
- Depending on how established the company is, most of the money you make will come either through increases in share price or through dividend payments.
- Larger companies tend to be more stable than smaller companies, but they also offer less growth potential.
See if stocks are a good fit for your investment portfolio.