Stocks FAQs What is a Stock? Stocks, also known as equity, are a security representing a holder’s proportionate ownership of a corporation. Stockholders are therefore entitled to that portion of the corporation’s assets and earnings. Companies issue stock in order to raise capital to finance future growth. What types of Stock are there? There are two types of Stock: common and preferred stock. How do I buy Stocks? Stocks are primarily bought and sold on stock exchanges, such as the New York Stock Exchange (or NYSE), but can be traded privately as well. Why do younger investors generally invest in Stocks? Historically, stocks have had a higher return than other types of investments over time. What organization regulates the Stock market? The trade of stock is regulated by the Securities Exchange Commission, or SEC, in order to protect investors by maintaining a fair and orderly functioning of the securities markets. About the Author True Tamplin, BSc, CEPF® Facebook Linkedin Instagram Twitter Youtube True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists. True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics. To learn more about True, visit his personal website or view his author profiles on Amazon, Nasdaq and Forbes.