🕷️ Crawler Inspector

URL Lookup

Direct Parameter Lookup

Raw Queries and Responses

1. Shard Calculation

Query:

Response:

Calculated Shard: 66 (from laksa105)

2. Crawled Status Check

Query:

curl -X POST \
  'http://laksa066.int.ahrefs:8124/' \
  -H 'Content-Type: text/plain' \
  -H 'X-ClickHouse-Database: crawler3' \
  -H 'Authorization: Basic YXBpOg==' \
  -d 'SELECT getAhrefsURLFromUnparsed(src_unparsed) AS found_url, ifNull(toUnixTimestamp(download_stamp), 0) AS crawl_time, ifNull(toUnixTimestamp(props_url_first_seen), 0) AS first_indexed_time, download_http_code AS http_code, src_unparsed AS src_unparsed, src_root_hash AS src_root_hash, history_drop_reason AS history_drop_reason, meta_title AS meta_title, meta_descriptions AS meta_descriptions, attrs_boilerpipe_text AS attrs_boilerpipe_text, attrs_markdown AS attrs_markdown, attrs_readable_markdown AS attrs_readable_markdown, meta_canonical AS meta_canonical, ml_categories_json AS ml_categories_json, ml_types_json AS ml_types_json, ml_intent_types_json AS ml_intent_types_json, meta_language AS meta_language, attrs_author AS attrs_author, ifNull(toUnixTimestamp(attrs_publish_time), 0) AS attrs_publish_time, ifNull(toUnixTimestamp(attrs_original_publish_time), 0) AS attrs_original_publish_time, ifNull(attrs_is_republished, 0) AS attrs_is_republished, ifNull(attrs_nr_words, 0) AS attrs_nr_words, ifNull(attrs_boilerpipe_nr_words, 0) AS attrs_boilerpipe_nr_words, ifNull(body_ext_links_number, 0) AS body_ext_links_number, ifNull(body_int_links_number, 0) AS body_int_links_number, ifNull(meta_nofollow, 0) AS meta_nofollow, ifNull(meta_noarchive, 0) AS meta_noarchive, ifNull(props_was_rendered, 0) AS props_was_rendered, ifNull(src_redirect, \'\') AS src_redirect, ifNull(download_time_msec, 0) AS download_time_msec, ifNull(download_ttfb_msec, 0) AS download_ttfb_msec, ifNull(download_size, 0) AS download_size FROM crawler3.page_info_local FINAL PREWHERE (src_root_hash, src_unparsed) IN ((getAhrefsRootHashFromUnparsed(getAhrefsUnparsedNoserviceFromURL(\'https://www.investor.gov/introduction-investing/investing-basics/investment-products/stocks\')), getAhrefsUnparsedNoserviceFromURL(\'https://www.investor.gov/introduction-investing/investing-basics/investment-products/stocks\'))) FORMAT JSONEachRow'

Response:

{"found_url":"https:\/\/www.investor.gov\/introduction-investing\/investing-basics\/investment-products\/stocks","crawl_time":1776333867,"first_indexed_time":1582524592,"http_code":200,"src_unparsed":"gov,investor!www,\/introduction-investing\/investing-basics\/investment-products\/stocks s443","src_root_hash":"2085703323267320866","history_drop_reason":null,"meta_title":"Stocks - FAQs | Investor.gov","meta_descriptions":["When you own a share of stock, you own part of a company. Learn about stocks. Get answers to stock FAQs from the SEC’s investor education staff."],"attrs_boilerpipe_text":"What are stocks?\nStocks are a type of security that gives stockholders a share of ownership in a company. Stocks also are called “equities.” Investors buy stocks for various reasons. Here are some of them:\nCapital appreciation, which occurs when a stock rises in price\nDividend payments, which come when the company distributes some of its earnings to stockholders\nAbility to vote shares and influence the company\nCompanies issue stock to get money for various things, which may include:\nPaying off debt\nLaunching new products\nExpanding into new markets or regions\nEnlarging facilities or building new ones\nWhat kinds of stock are there?\nWhat are the benefits and risks of stocks?\nHow to buy and sell stocks\nUnderstanding fees\nAvoiding fraud\nWhat kinds of stocks are there?\nThere are two main kinds of stocks, common stock and preferred stock.\nCommon\nstock entitles owners to vote at shareholder meetings and receive dividends.\nPreferred\nstockholders usually don’t have voting rights but they receive dividend payments before common stockholders do, and have priority over common stockholders if the company goes bankrupt and its assets are liquidated.\nCommon and preferred stocks may fall into one or more of the following categories:\nGrowth stocks\nhave earnings growing at a faster rate than the market average. They rarely pay dividends and investors buy them in the hope of capital appreciation. A start-up technology company is likely to be a growth stock.\nIncome stocks\npay dividends consistently. Investors buy them for the income they generate. An established utility company is likely to be an income stock.\nValue stocks\nhave a low price-to-earnings (PE) ratio, meaning they are cheaper to buy than stocks with a higher PE. Value stocks may be growth or income stocks, and their low PE ratio may reflect the fact that they have fallen out of favor with investors for some reason. People buy value stocks in the hope that the market has overreacted and that the stock’s price will rebound.\nBlue-chip stocks\nare shares in large, well-known companies with a solid history of growth. They generally pay dividends.\nAnother way to categorize stocks is by the size of the company, as shown in its market capitalization. There are large-cap, mid-cap, and small-cap stocks. Shares in very small companies are sometimes called “microcap” stocks. The very lowest priced stocks are known as “penny stocks.” These companies may have little or no earnings. Penny stocks do not pay dividends and are highly speculative.\nWhat are the benefits and risks of stocks?\nStocks offer investors the greatest potential for growth (capital appreciation) over the long haul. Investors willing to stick with stocks over long periods of time, say 15 years, generally have been rewarded with strong, positive returns.\nBut stock prices move down as well as up. There’s no guarantee that the company whose stock you hold will grow and do well, so you can lose money you invest in stocks.\nIf a company goes bankrupt and its assets are liquidated, common stockholders are the last in line to share in the proceeds. The company’s bondholders will be paid first, then holders of preferred stock. If you are a common stockholder, you get whatever is left, which may be nothing.\nEven when companies aren’t in danger of failing, their stock price may fluctuate up or down. Large company stocks as a group, for example, have lost money on average about one out of every three years. If you have to sell shares on a day when the stock price is below the price you paid for the shares, you will lose money on the sale.\nMarket fluctuations can be unnerving to some investors. A stock’s price can be affected by factors inside the company, such as a faulty product, or by events the company has no control over, such as political or market events.\nStocks usually are one part of an investor’s holdings. If you are young and saving for a long-term goal such as retirement, you may want to hold more stocks than bonds. Investors nearing or in retirement may want to hold more bonds than stocks.\nThe risks of stock holdings can be offset in part by investing in a number of different stocks. Investing in other kinds of assets that are not stocks, such as bonds, is another way to offset some of the risks of owning stocks.\nHow to buy and sell stocks\nYou can buy and sell stocks through:\nA direct stock plan\nA dividend reinvestment plan\nA discount or full-service broker\nA stock fund\nDirect stock plans.\nSome companies allow you to buy or sell their stock directly through them without using a broker. This saves on commissions, but you may have to pay other fees to the plan, including if you transfer shares to a broker to sell them. Some companies limit direct stock plans to employees of the company or existing shareholders. Some require minimum amounts for purchases or account levels.\nDirect stock plans usually will not allow you to buy or sell shares at a specific market price or at a specific time. Instead, the company will buy or sell shares for the plan at set times — such as daily, weekly, or monthly — and at an average market price. Depending on the plan, you may be able to automate your purchases and have the cost deducted automatically from your savings account.\nDividend reinvestment plans. \nThese plans allow you to buy more shares of a stock you already own by reinvesting dividend payments into the company. You must sign an agreement with the company to have this done. Check with the company or your brokerage firm to see if you will be charged for this service.\nDiscount or full-service broker.\nBrokers buy and sell shares for customers for a fee, known as a commission.\nStock funds\nare another way to buy stocks. These are a type of mutual fund that invests primarily in stocks. Depending on its investment objective and policies, a stock fund may concentrate on a particular type of stock, such as blue chips, large-cap value stocks, or mid-cap growth stocks. Stock funds are offered by investment companies and can be purchased directly from them or through a broker or adviser.\nUnderstanding fees\nBuying and selling stocks entails fees. A direct stock plan or a dividend reinvestment plan may charge you a fee for that service. Brokers who buy and sell stocks for you charge a commission. A discount brokerage charges lower commissions than what you would pay at a full-service brokerage. But generally you have to research and choose investments by yourself. A full-service brokerage costs more, but the higher commissions pay for investment advice based on that firm’s research.\nAvoiding fraud\nStocks in public companies are registered with the SEC and in most cases, public companies are required to file reports to the SEC quarterly and annually. Annual reports include financial statements that have been audited by an independent audit firm. Information on public companies can be found on the SEC’s EDGAR system.","attrs_markdown":"[Skip to main content](https:\/\/www.investor.gov\/introduction-investing\/investing-basics\/investment-products\/stocks#main-content)\n\n![U.S. flag](https:\/\/www.investor.gov\/sites\/investorgov\/themes\/custom\/investor\/libraries\/uswds\/img\/us_flag_small.png)\n\nAn official website of the United States government\n\nHere’s how you know\n\nHere’s how you know\n\n![Dot gov](https:\/\/www.investor.gov\/sites\/investorgov\/themes\/custom\/investor\/libraries\/uswds\/img\/icon-dot-gov.svg)\n\n**The .gov means it’s official.**   \n Federal government websites often end in .gov or .mil. Before sharing sensitive information, make sure you’re on a federal government site.\n\n![Https](https:\/\/www.investor.gov\/sites\/investorgov\/themes\/custom\/investor\/libraries\/uswds\/img\/icon-https.svg)\n\n**The site is secure.**   \n The **https:\/\/** ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely.\n\n[![SEC Emblem](https:\/\/www.investor.gov\/sites\/investorgov\/themes\/custom\/investor\/logo.png)](https:\/\/www.sec.gov\/ \"SEC Emblem\")\n\n[Investor.gov U.S. Securities and Exchange Commission](https:\/\/www.investor.gov\/)\n\n## Auxiliary Header\n- [About Us](https:\/\/www.investor.gov\/about-us)\n- [Contact Us](https:\/\/www.investor.gov\/contact-us)\n- [Follow Us](https:\/\/www.investor.gov\/follow-us)\n- [Glossary](https:\/\/www.investor.gov\/introduction-investing\/investing-basics\/glossary)\n- [Información en Español](https:\/\/www.investor.gov\/informacion-en-espanol)\n\nMenu Toggle\n\n## Main navigation\n- [BACK]()\n- [Introduction to Investing](https:\/\/www.investor.gov\/introduction-investing)\n  - [BACK]()\n  - Getting Started\n    - [BACK]()\n    - [Five Questions to Ask Before You Invest](https:\/\/www.investor.gov\/introduction-investing\/getting-started\/five-questions-ask-you-invest)\n    - [Understanding Fees](https:\/\/www.investor.gov\/introduction-investing\/getting-started\/understanding-fees)\n    - [Asset Allocation and Diversification](https:\/\/www.investor.gov\/introduction-investing\/getting-started\/asset-allocation)\n    - [Investing on Your Own](https:\/\/www.investor.gov\/introduction-investing\/getting-started\/investing-your-own)\n    - [Working with an Investment Professional](https:\/\/www.investor.gov\/introduction-investing\/getting-started\/working-investment-professional)\n    - [Researching Investments](https:\/\/www.investor.gov\/introduction-investing\/getting-started\/researching-investments)\n  - Investing Basics\n    - [BACK]()\n    - [Save and Invest](https:\/\/www.investor.gov\/introduction-investing\/investing-basics\/save-and-invest)\n    - [Invest For Your Goals](https:\/\/www.investor.gov\/introduction-investing\/investing-basics\/invest-your-goals)\n    - [How Stock Markets Work](https:\/\/www.investor.gov\/introduction-investing\/investing-basics\/how-stock-markets-work)\n    - [Investment Accounts](https:\/\/www.investor.gov\/introduction-investing\/investing-basics\/investment-accounts)\n    - [Investment Products](https:\/\/www.investor.gov\/introduction-investing\/investing-basics\/investment-products)\n    - [What is Risk?](https:\/\/www.investor.gov\/introduction-investing\/investing-basics\/what-risk)\n    - [Glossary](https:\/\/www.investor.gov\/introduction-investing\/investing-basics\/glossary)\n    - [Role of the SEC](https:\/\/www.investor.gov\/introduction-investing\/investing-basics\/role-sec)\n  - General Resources\n    - [BACK]()\n    - [Investor Alerts & Bulletins](https:\/\/www.investor.gov\/introduction-investing\/general-resources\/news-alerts\/alerts-bulletins)\n    - [Publications and Research](https:\/\/www.investor.gov\/introduction-investing\/general-resources\/publications-and-research)\n  - [Questions? Visit Our Glossary](https:\/\/www.investor.gov\/introduction-investing\/investing-basics\/glossary)\n- [Financial Tools & Calculators](https:\/\/www.investor.gov\/free-financial-planning-tools)\n  - [BACK]()\n  - Financial Tools\n    - [BACK]()\n    - [Investment Professional Background Check](https:\/\/www.investor.gov\/research-you-invest\/free-investment-professional-background-check)\n    - [EDGAR - Search Company Filings](https:\/\/www.sec.gov\/edgar\/searchedgar\/companysearch)\n    - [Fund Analyzer](https:\/\/www.investor.gov\/financial-tools-calculators\/financial-tools\/mutual-fund-analyzer)\n    - [Retirement Ballpark E\\$timate](https:\/\/www.investor.gov\/financial-tools-calculators\/financial-tools\/ballpark-etimate)\n    - [Social Security Retirement Estimator](https:\/\/www.investor.gov\/financial-tools-calculators\/financial-tools\/retirement-estimator)\n  - Calculators\n    - [BACK]()\n    - [Compound Interest Calculator](https:\/\/www.investor.gov\/financial-tools-calculators\/calculators\/compound-interest-calculator)\n    - [Calculadora de distribución mínima requerida](https:\/\/www.investor.gov\/financial-tools-calculators\/calculators\/calculadora-de-distribucion-minima-requerida)\n    - [Calculadora de interés compuesto](https:\/\/www.investor.gov\/financial-tools-calculators\/calculators\/calculadora-de-interes-compuesto)\n    - [Savings Goal Calculator](https:\/\/www.investor.gov\/financial-tools-calculators\/calculators\/savings-goal-calculator)\n    - [Calculadora de objetivo de ahorro](https:\/\/www.investor.gov\/financial-tools-calculators\/calculators\/calculadora-de-objetivo-de-ahorro)\n    - [Required Minimum Distribution Calculator](https:\/\/www.investor.gov\/financial-tools-calculators\/calculators\/required-minimum-distribution-calculator)\n    - [College Savings Calculator](https:\/\/www.investor.gov\/financial-tools-calculators\/calculators\/college-savings-calculator)\n  - [Alerts and Bulletins](https:\/\/www.investor.gov\/introduction-investing\/general-resources\/news-alerts\/alerts-bulletins)\n- [Protect Your Investments](https:\/\/www.investor.gov\/protect-your-investments)\n  - [BACK]()\n  - Fraud\n    - [BACK]()\n    - [Types of Fraud](https:\/\/www.investor.gov\/protect-your-investments\/fraud\/types-fraud)\n    - [How to Avoid Fraud](https:\/\/www.investor.gov\/protect-your-investments\/fraud\/how-avoid-fraud)\n    - [Resources for Victims](https:\/\/www.investor.gov\/protect-your-investments\/fraud\/resources-victims-securities-law-violations)\n  - Get Help\n    - [BACK]()\n    - [Submit Questions and Complaints](https:\/\/www.investor.gov\/protect-your-investments\/get-help\/submit-questions-and-complaints)\n    - [Arbitration and Mediation Clinics](https:\/\/www.investor.gov\/protect-your-investments\/get-help\/arbitration-and-mediation-clinics)\n  - [Check Out Your Investment Professional](http:\/\/www.adviserinfo.sec.gov\/IAPD\/Default.aspx)\n- [Additional Resources](https:\/\/www.investor.gov\/additional-resources)\n  - [BACK]()\n  - Spotlight\n    - [BACK]()\n    - [Common Scams](https:\/\/www.investor.gov\/additional-resources\/spotlight\/common-scams)\n    - [Crypto Assets](https:\/\/www.investor.gov\/additional-resources\/spotlight\/crypto-assets)\n    - [HoweyTrade](https:\/\/www.investor.gov\/additional-resources\/spotlight\/howeytrade)\n    - [Never Stop Learning](https:\/\/www.investor.gov\/additional-resources\/spotlight\/never-stop-learning)\n    - [Public Service Campaign](https:\/\/www.investor.gov\/additional-resources\/spotlight\/public-service-campaign)\n    - [World Investor Week](https:\/\/www.investor.gov\/additional-resources\/spotlight\/world-investor-week-2025)\n    - [Investing Quizzes](https:\/\/www.investor.gov\/additional-resources\/spotlight\/investing-quizzes)\n    - [Videos](https:\/\/www.investor.gov\/additional-resources\/spotlight\/videos)\n  - Retirement Toolkit\n    - [BACK]()\n    - [First Job](https:\/\/www.investor.gov\/additional-resources\/retirement-toolkit\/first-job)\n    - [Switching Jobs](https:\/\/www.investor.gov\/additional-resources\/retirement-toolkit\/switching-jobs)\n    - [Employer-Sponsored Plans](https:\/\/www.investor.gov\/additional-resources\/retirement-toolkit\/employer-sponsored-plans)\n    - [Federal Government Plans](https:\/\/www.investor.gov\/additional-resources\/retirement-toolkit\/federal-government-plans)\n    - [Managing Lifetime Income](https:\/\/www.investor.gov\/additional-resources\/retirement-toolkit\/managing-lifetime-income)\n    - [Senior Specialist Designations](https:\/\/www.investor.gov\/additional-resources\/retirement-toolkit\/senior-specialists-designations)\n    - [Social Security](https:\/\/www.investor.gov\/additional-resources\/retirement-toolkit\/social-security)\n    - [Avoiding Retirement Fraud](https:\/\/www.investor.gov\/additional-resources\/retirement-toolkit\/avoiding-retirement-fraud)\n  - Information For:\n    - [BACK]()\n    - [Military](https:\/\/www.investor.gov\/additional-resources\/information\/military)\n    - [Veterans](https:\/\/www.investor.gov\/additional-resources\/information\/veterans)\n    - [Older Investors](https:\/\/www.investor.gov\/additional-resources\/information\/older-investors)\n    - [Teachers](https:\/\/www.investor.gov\/additional-resources\/information\/saving-and-investing-resources-teachers)\n    - [Youth](https:\/\/www.investor.gov\/additional-resources\/information\/youth-resources)\n    - [Entrepreneurs](https:\/\/www.sec.gov\/education\/capitalraising)\n  - [Calculate Compound Interest](https:\/\/www.investor.gov\/financial-tools-calculators\/calculators\/compound-interest-calculator)\n\n## Breadcrumb\n1. [Home](https:\/\/www.investor.gov\/)\n2. [Introduction to Investing](https:\/\/www.investor.gov\/introduction-investing)\n3. [Investment Products](https:\/\/www.investor.gov\/introduction-investing\/investing-basics\/investment-products)\n\n## Main navigation\n- [Save and Invest](https:\/\/www.investor.gov\/introduction-investing\/investing-basics\/save-and-invest)\n  - [Define Your Goals](https:\/\/www.investor.gov\/introduction-investing\/investing-basics\/save-and-invest\/define-your-goals)\n  - [Diversify Your Investments](https:\/\/www.investor.gov\/introduction-investing\/investing-basics\/save-and-invest\/diversify-your-investments)\n  - [Figure Out Your Finances](https:\/\/www.investor.gov\/introduction-investing\/investing-basics\/save-and-invest\/figure-out-your-finances)\n  - [Gauge Your Risk Tolerance](https:\/\/www.investor.gov\/introduction-investing\/investing-basics\/save-and-invest\/gauge-your-risk-tolerance)\n  - [Learn About Investment Options](https:\/\/www.investor.gov\/introduction-investing\/investing-basics\/save-and-invest\/learn-about-investment-options)\n  - [Pay Off Credit Cards or Other High Interest Debt](https:\/\/www.investor.gov\/introduction-investing\/investing-basics\/save-and-invest\/pay-credit-cards-or-other-high-interest)\n  - [Save for a Rainy Day](https:\/\/www.investor.gov\/introduction-investing\/investing-basics\/save-and-invest\/save-rainy-day)\n  - [Small Savings Add Up to Big Money](https:\/\/www.investor.gov\/introduction-investing\/investing-basics\/save-and-invest\/small-savings-add-big-money)\n  - [Understand What It Means to Invest](https:\/\/www.investor.gov\/introduction-investing\/investing-basics\/save-and-invest\/understand-what-it-means-invest)\n  [Expand]()\n- [Invest For Your Goals](https:\/\/www.investor.gov\/introduction-investing\/investing-basics\/invest-your-goals)\n- [How Stock Markets Work](https:\/\/www.investor.gov\/introduction-investing\/investing-basics\/how-stock-markets-work)\n  - [Public Companies](https:\/\/www.investor.gov\/introduction-investing\/investing-basics\/how-stock-markets-work\/public-companies)\n  - [Market Participants](https:\/\/www.investor.gov\/introduction-investing\/investing-basics\/how-stock-markets-work\/market-participants)\n  - [Types of Orders](https:\/\/www.investor.gov\/introduction-investing\/investing-basics\/how-stock-markets-work\/types-orders)\n  - [Types of Brokerage Accounts](https:\/\/www.investor.gov\/introduction-investing\/investing-basics\/how-stock-markets-work\/types-brokerage-accounts)\n  - [Stock Purchases and Sales: Long and Short](https:\/\/www.investor.gov\/introduction-investing\/investing-basics\/how-stock-markets-work\/stock-purchases-and-sales-long-and)\n  - [Executing an Order](https:\/\/www.investor.gov\/introduction-investing\/investing-basics\/how-stock-markets-work\/executing-order)\n  [Expand]()\n- [Investment Accounts](https:\/\/www.investor.gov\/introduction-investing\/investing-basics\/investment-accounts)\n  - [Advisory Accounts](https:\/\/www.investor.gov\/introduction-investing\/investing-basics\/investment-accounts\/advisory-accounts)\n  - [Brokerage Accounts](https:\/\/www.investor.gov\/introduction-investing\/investing-basics\/investment-accounts\/brokerage-accounts)\n  - [Tax-Advantaged Accounts](https:\/\/www.investor.gov\/introduction-investing\/investing-basics\/investment-accounts\/tax-advantaged-accounts)\n    - [ABLE Accounts](https:\/\/www.investor.gov\/introduction-investing\/investing-basics\/investment-accounts\/tax-advandtaged-accounts\/able-accounts)\n    - [Education Savings - 529 Plans](https:\/\/www.investor.gov\/introduction-investing\/investing-basics\/glossary\/529-plans)\n    - [HSAs (Health Savings Accounts)](https:\/\/www.investor.gov\/introduction-investing\/investing-basics\/investment-accounts\/tax-advandtaged-accounts\/hsas-health-savings-accounts)\n    - [Retirement Savings](https:\/\/www.investor.gov\/introduction-investing\/investing-basics\/investment-accounts\/tax-advantaged-accounts\/retirement-savings)\n      - [401 (k)](https:\/\/www.investor.gov\/additional-resources\/retirement-toolkit\/employer-sponsored-plans\/traditional-and-roth-401k-plans)\n      - [403(b) and 457(b) Plans](https:\/\/www.investor.gov\/introduction-investing\/investing-basics\/investment-accounts\/tax-advantaged-accounts\/retirement-savings\/403b-and-457b-plans)\n      - [Individual Retirement Accounts (IRAs)](https:\/\/www.investor.gov\/introduction-investing\/investing-basics\/investment-accounts\/tax-advantaged-accounts\/retirement-savings\/individual-retirement-accounts-iras)\n      [Expand]()\n    - [Trump Accounts](https:\/\/www.investor.gov\/introduction-investing\/investing-basics\/investment-accounts\/tax-advantaged-accounts\/trump-accounts)\n    [Expand]()\n  [Expand]()\n- [Investment Products](https:\/\/www.investor.gov\/introduction-investing\/investing-basics\/investment-products)\n  - [Annuities](https:\/\/www.investor.gov\/introduction-investing\/investing-basics\/investment-products\/annuities)\n    - [Indexed Annuities](https:\/\/www.investor.gov\/introduction-investing\/general-resources\/news-alerts\/alerts-bulletins\/investor-bulletins\/updated-investor-bulletin-indexed-annuities)\n    - [Variable Annuities](https:\/\/www.investor.gov\/introduction-investing\/investing-basics\/investment-products\/annuities\/variable-annuities)\n    [Expand]()\n  - [Auction Rate Securities](https:\/\/www.investor.gov\/introduction-investing\/investing-basics\/investment-products\/auction-rate-securities)\n  - Bonds or Fixed Income Products\n    - [Bonds](https:\/\/www.investor.gov\/introduction-investing\/investing-basics\/investment-products\/bonds-or-fixed-income-products\/bonds)\n    - [Corporate Bonds](https:\/\/www.investor.gov\/introduction-investing\/investing-basics\/investment-products\/bonds-or-fixed-income-products)\n    - [High-yield Corporate Bonds](https:\/\/www.investor.gov\/introduction-investing\/investing-basics\/investment-products\/bonds-or-fixed-income-products\/high)\n    - [Municipal Bonds](https:\/\/www.investor.gov\/introduction-investing\/investing-basics\/investment-products\/bonds-or-fixed-income-products-0)\n    - [Savings Bonds](https:\/\/www.investor.gov\/introduction-investing\/investing-basics\/investment-products\/bonds-or-fixed-income-products\/savings)\n    [Expand]()\n  - [Certificates of Deposit (CDs)](https:\/\/www.investor.gov\/introduction-investing\/investing-basics\/investment-products\/certificates-deposit-cds)\n  - Closed End Funds\n    - [Interval Funds](https:\/\/www.investor.gov\/introduction-investing\/investing-basics\/investment-products\/closed-end-funds\/interval-funds)\n    - [Publicly Traded Business Development Companies (BDCs)](https:\/\/www.investor.gov\/introduction-investing\/investing-basics\/investment-products\/closed-end-funds\/publicly-traded-business-development-companies-bdcs)\n    - [Publicly Traded Closed-End Funds](https:\/\/www.investor.gov\/introduction-investing\/investing-basics\/investment-products\/closed-end-funds\/publicly-traded-closed-end-funds)\n    [Expand]()\n  - [Commodities](https:\/\/www.investor.gov\/introduction-investing\/investing-basics\/investment-products\/commodities)\n  - [International Investing](https:\/\/www.investor.gov\/introduction-investing\/investing-basics\/investment-products\/international-investing)\n  - Mutual Funds and Exchange-Traded Funds (ETFs)\n    - [Alternative Mutual Funds](https:\/\/www.investor.gov\/introduction-investing\/investing-basics\/investment-products\/mutual-funds-and-exchange-traded-funds-etfs\/alternative-mutual-funds)\n    - [Leveraged Loan Funds](https:\/\/www.investor.gov\/introduction-investing\/investing-basics\/investment-products\/mutual-funds-and-exchange-traded-0)\n    - [Exchange-Traded Funds (ETFs)](https:\/\/www.investor.gov\/introduction-investing\/investing-basics\/investment-products\/mutual-funds-and-exchange-traded-2)\n    - [Index Funds](https:\/\/www.investor.gov\/introduction-investing\/investing-basics\/investment-products\/mutual-funds-and-exchange-traded-4)\n    - [Money Market Funds](https:\/\/www.investor.gov\/introduction-investing\/investing-basics\/investment-products\/mutual-funds-and-exchange-traded-5)\n    - [Mutual Funds](https:\/\/www.investor.gov\/introduction-investing\/investing-basics\/investment-products\/mutual-funds-and-exchange-traded-funds-etfs\/mutual-funds)\n    - [Smart Beta, Quant Funds and other Non- Traditional Index Funds](https:\/\/www.investor.gov\/introduction-investing\/investing-basics\/investment-products\/mutual-funds-and-exchange-traded-3)\n    - [Target Date Funds](https:\/\/www.investor.gov\/introduction-investing\/investing-basics\/investment-products\/mutual-funds-and-exchange-traded-6)\n    [Expand]()\n  - [Options or Derivatives](https:\/\/www.investor.gov\/introduction-investing\/investing-basics\/glossary\/options)\n  - Private Investment Funds\n    - [Hedge Funds](https:\/\/www.investor.gov\/introduction-investing\/investing-basics\/investment-products\/private-investment-funds\/hedge-funds)\n    - [Private Equity Funds](https:\/\/www.investor.gov\/introduction-investing\/investing-basics\/investment-products\/private-investment-funds\/private-equity)\n    [Expand]()\n  - [Real Estate Investment Trusts (REITs)](https:\/\/www.investor.gov\/introduction-investing\/investing-basics\/investment-products\/real-estate-investment-trusts-reits)\n  - [Stocks](https:\/\/www.investor.gov\/introduction-investing\/investing-basics\/investment-products\/stocks)\n  - [Structured Notes with Principal Protection](https:\/\/www.investor.gov\/introduction-investing\/investing-basics\/investment-products\/structured-notes-principal-protection)\n  - [Variable Life Products](https:\/\/www.investor.gov\/introduction-investing\/investing-basics\/investment-products\/variable-life)\n  [Expand]()\n- [What is Risk?](https:\/\/www.investor.gov\/introduction-investing\/investing-basics\/what-risk)\n- [Glossary](https:\/\/www.investor.gov\/introduction-investing\/investing-basics\/glossary)\n- [Role of the SEC](https:\/\/www.investor.gov\/introduction-investing\/investing-basics\/role-sec)\n  - [How to Submit Comments to the SEC](https:\/\/www.investor.gov\/introduction-investing\/investing-basics\/role-sec\/how-submit-comments-sec)\n  - [Researching the Federal Securities Laws Through the SEC Website](https:\/\/www.investor.gov\/introduction-investing\/investing-basics\/role-sec\/researching-federal-securities-laws-through-sec-website)\n  - [The Laws That Govern the Securities Industry](https:\/\/www.investor.gov\/introduction-investing\/investing-basics\/role-sec\/laws-govern-securities-industry)\n  [Expand]()\n\n# Stocks - FAQs\n## What are stocks?\nStocks are a type of security that gives stockholders a share of ownership in a company. Stocks also are called “equities.” Investors buy stocks for various reasons. Here are some of them:\n\n- Capital appreciation, which occurs when a stock rises in price\n- Dividend payments, which come when the company distributes some of its earnings to stockholders\n- Ability to vote shares and influence the company\n\nCompanies issue stock to get money for various things, which may include:\n\n- Paying off debt\n- Launching new products\n- Expanding into new markets or regions\n- Enlarging facilities or building new ones\n\n[What kinds of stock are there?](https:\/\/www.investor.gov\/introduction-investing\/investing-basics\/investment-products\/stocks#Kinds)  \n [What are the benefits and risks of stocks?](https:\/\/www.investor.gov\/introduction-investing\/investing-basics\/investment-products\/stocks#Risks)  \n [How to buy and sell stocks](https:\/\/www.investor.gov\/introduction-investing\/investing-basics\/investment-products\/stocks#Buy%20and%20sell)  \n [Understanding fees](https:\/\/www.investor.gov\/introduction-investing\/investing-basics\/investment-products\/stocks#Fees)  \n [Avoiding fraud](https:\/\/www.investor.gov\/introduction-investing\/investing-basics\/investment-products\/stocks#Fraud)\n\n## What kinds of stocks are there?\nThere are two main kinds of stocks, common stock and preferred stock.\n\n**Common** stock entitles owners to vote at shareholder meetings and receive dividends.\n\n**Preferred** stockholders usually don’t have voting rights but they receive dividend payments before common stockholders do, and have priority over common stockholders if the company goes bankrupt and its assets are liquidated.\n\nCommon and preferred stocks may fall into one or more of the following categories:\n\n- **Growth stocks** have earnings growing at a faster rate than the market average. They rarely pay dividends and investors buy them in the hope of capital appreciation. A start-up technology company is likely to be a growth stock.\n- **Income stocks** pay dividends consistently. Investors buy them for the income they generate. An established utility company is likely to be an income stock.\n- **Value stocks** have a low price-to-earnings (PE) ratio, meaning they are cheaper to buy than stocks with a higher PE. Value stocks may be growth or income stocks, and their low PE ratio may reflect the fact that they have fallen out of favor with investors for some reason. People buy value stocks in the hope that the market has overreacted and that the stock’s price will rebound.\n- **Blue-chip stocks** are shares in large, well-known companies with a solid history of growth. They generally pay dividends.\n\nAnother way to categorize stocks is by the size of the company, as shown in its market capitalization. There are large-cap, mid-cap, and small-cap stocks. Shares in very small companies are sometimes called “microcap” stocks. The very lowest priced stocks are known as “penny stocks.” These companies may have little or no earnings. Penny stocks do not pay dividends and are highly speculative.\n\n## What are the benefits and risks of stocks?\nStocks offer investors the greatest potential for growth (capital appreciation) over the long haul. Investors willing to stick with stocks over long periods of time, say 15 years, generally have been rewarded with strong, positive returns.\n\nBut stock prices move down as well as up. There’s no guarantee that the company whose stock you hold will grow and do well, so you can lose money you invest in stocks.\n\nIf a company goes bankrupt and its assets are liquidated, common stockholders are the last in line to share in the proceeds. The company’s bondholders will be paid first, then holders of preferred stock. If you are a common stockholder, you get whatever is left, which may be nothing.\n\nEven when companies aren’t in danger of failing, their stock price may fluctuate up or down. Large company stocks as a group, for example, have lost money on average about one out of every three years. If you have to sell shares on a day when the stock price is below the price you paid for the shares, you will lose money on the sale.\n\nMarket fluctuations can be unnerving to some investors. A stock’s price can be affected by factors inside the company, such as a faulty product, or by events the company has no control over, such as political or market events.\n\nStocks usually are one part of an investor’s holdings. If you are young and saving for a long-term goal such as retirement, you may want to hold more stocks than bonds. Investors nearing or in retirement may want to hold more bonds than stocks.\n\nThe risks of stock holdings can be offset in part by investing in a number of different stocks. Investing in other kinds of assets that are not stocks, such as bonds, is another way to offset some of the risks of owning stocks.\n\n## How to buy and sell stocks\nYou can buy and sell stocks through:\n\n- A direct stock plan\n- A dividend reinvestment plan\n- A discount or full-service broker\n- A stock fund\n\n**Direct stock plans.** Some companies allow you to buy or sell their stock directly through them without using a broker. This saves on commissions, but you may have to pay other fees to the plan, including if you transfer shares to a broker to sell them. Some companies limit direct stock plans to employees of the company or existing shareholders. Some require minimum amounts for purchases or account levels.\n\nDirect stock plans usually will not allow you to buy or sell shares at a specific market price or at a specific time. Instead, the company will buy or sell shares for the plan at set times — such as daily, weekly, or monthly — and at an average market price. Depending on the plan, you may be able to automate your purchases and have the cost deducted automatically from your savings account.\n\n**Dividend reinvestment plans.** These plans allow you to buy more shares of a stock you already own by reinvesting dividend payments into the company. You must sign an agreement with the company to have this done. Check with the company or your brokerage firm to see if you will be charged for this service.\n\n**Discount or full-service broker.** Brokers buy and sell shares for customers for a fee, known as a commission.\n\n**Stock funds** are another way to buy stocks. These are a type of mutual fund that invests primarily in stocks. Depending on its investment objective and policies, a stock fund may concentrate on a particular type of stock, such as blue chips, large-cap value stocks, or mid-cap growth stocks. Stock funds are offered by investment companies and can be purchased directly from them or through a broker or adviser.\n\n## Understanding fees\nBuying and selling stocks entails fees. A direct stock plan or a dividend reinvestment plan may charge you a fee for that service. Brokers who buy and sell stocks for you charge a commission. A discount brokerage charges lower commissions than what you would pay at a full-service brokerage. But generally you have to research and choose investments by yourself. A full-service brokerage costs more, but the higher commissions pay for investment advice based on that firm’s research.\n\n## Avoiding fraud\nStocks in public companies are registered with the SEC and in most cases, public companies are required to file reports to the SEC quarterly and annually. Annual reports include financial statements that have been audited by an independent audit firm. Information on public companies can be found on the SEC’s EDGAR system.\n\n## Featured Content\n[![](https:\/\/www.investor.gov\/sites\/investorgov\/files\/styles\/card_image\/public\/2026-03\/3x2-trump-accounts_original.png?itok=0MkEO5o1) Jumpstart Your Child's Financial Future Learn how to enroll in a Trump Account today\\!](https:\/\/www.investor.gov\/introduction-investing\/investing-basics\/investment-accounts\/tax-advantaged-accounts\/trump-accounts)\n\n[![](https:\/\/www.investor.gov\/sites\/investorgov\/files\/styles\/card_image\/public\/2024-04\/image004.png?itok=mGGSJ34r) Use Financial Tools and Calculators Access RMD, compound interest and savings goal calculators plus other financial tools.](https:\/\/www.investor.gov\/free-financial-planning-tools)\n\n[![](https:\/\/www.investor.gov\/sites\/investorgov\/files\/styles\/card_image\/public\/2026-03\/Screenshot%202026-03-31%20at%204.39.27%E2%80%AFPM.png?itok=OIgyFUzg) Learn About Tax-Advantaged Accounts 401(k) plans, IRAs, HSAs, 529 plans, Trump Accounts, and others offer tax benefits.](https:\/\/www.investor.gov\/introduction-investing\/investing-basics\/investment-accounts\/tax-advantaged-accounts)\n\n[![](https:\/\/www.investor.gov\/sites\/investorgov\/files\/styles\/card_image\/public\/2026-03\/Financial%20Independence.png?itok=jBVKR4RG) Test Your Investing Knowledge Participate in National Financial Literacy Month by taking our financial independence investing quiz\\!](https:\/\/www.investor.gov\/additional-resources\/spotlight\/investing-quizzes)\n\n## Never stop learning about investing\\!\nStay up to date with the latest Investor Alerts & Bulletins, Director’s Take Articles, Quizzes, and the Investor.gov Shares Digest.\n\n## Site Information\n- [SEC.gov](https:\/\/www.sec.gov\/)\n- [MyMoney.gov](https:\/\/www.mymoney.gov\/)\n- [FOIA](https:\/\/www.sec.gov\/page\/office-foia-services)\n- [Plain Writing](https:\/\/www.sec.gov\/plainwriting.shtml)\n- [Privacy](https:\/\/www.sec.gov\/privacy.htm)\n- [Vulnerability Disclosure Policy](https:\/\/www.sec.gov\/vulnerability-disclosure-policy)\n- [USA.gov](https:\/\/www.usa.gov\/)\n- [Disclaimer](https:\/\/www.investor.gov\/disclaimer)\n- [Multilingual Disclaimer](https:\/\/www.investor.gov\/node\/15056)\n\n[Return to Top](https:\/\/www.investor.gov\/introduction-investing\/investing-basics\/investment-products\/stocks)","attrs_readable_markdown":"## What are stocks?\nStocks are a type of security that gives stockholders a share of ownership in a company. Stocks also are called “equities.” Investors buy stocks for various reasons. Here are some of them:\n\n- Capital appreciation, which occurs when a stock rises in price\n- Dividend payments, which come when the company distributes some of its earnings to stockholders\n- Ability to vote shares and influence the company\n\nCompanies issue stock to get money for various things, which may include:\n\n- Paying off debt\n- Launching new products\n- Expanding into new markets or regions\n- Enlarging facilities or building new ones\n\n[What kinds of stock are there?](https:\/\/www.investor.gov\/introduction-investing\/investing-basics\/investment-products\/stocks#Kinds)  \n [What are the benefits and risks of stocks?](https:\/\/www.investor.gov\/introduction-investing\/investing-basics\/investment-products\/stocks#Risks)  \n [How to buy and sell stocks](https:\/\/www.investor.gov\/introduction-investing\/investing-basics\/investment-products\/stocks#Buy%20and%20sell)  \n [Understanding fees](https:\/\/www.investor.gov\/introduction-investing\/investing-basics\/investment-products\/stocks#Fees)  \n [Avoiding fraud](https:\/\/www.investor.gov\/introduction-investing\/investing-basics\/investment-products\/stocks#Fraud)\n\n## What kinds of stocks are there?\nThere are two main kinds of stocks, common stock and preferred stock.\n\n**Common** stock entitles owners to vote at shareholder meetings and receive dividends.\n\n**Preferred** stockholders usually don’t have voting rights but they receive dividend payments before common stockholders do, and have priority over common stockholders if the company goes bankrupt and its assets are liquidated.\n\nCommon and preferred stocks may fall into one or more of the following categories:\n\n- **Growth stocks** have earnings growing at a faster rate than the market average. They rarely pay dividends and investors buy them in the hope of capital appreciation. A start-up technology company is likely to be a growth stock.\n- **Income stocks** pay dividends consistently. Investors buy them for the income they generate. An established utility company is likely to be an income stock.\n- **Value stocks** have a low price-to-earnings (PE) ratio, meaning they are cheaper to buy than stocks with a higher PE. Value stocks may be growth or income stocks, and their low PE ratio may reflect the fact that they have fallen out of favor with investors for some reason. People buy value stocks in the hope that the market has overreacted and that the stock’s price will rebound.\n- **Blue-chip stocks** are shares in large, well-known companies with a solid history of growth. They generally pay dividends.\n\nAnother way to categorize stocks is by the size of the company, as shown in its market capitalization. There are large-cap, mid-cap, and small-cap stocks. Shares in very small companies are sometimes called “microcap” stocks. The very lowest priced stocks are known as “penny stocks.” These companies may have little or no earnings. Penny stocks do not pay dividends and are highly speculative.\n\n## What are the benefits and risks of stocks?\nStocks offer investors the greatest potential for growth (capital appreciation) over the long haul. Investors willing to stick with stocks over long periods of time, say 15 years, generally have been rewarded with strong, positive returns.\n\nBut stock prices move down as well as up. There’s no guarantee that the company whose stock you hold will grow and do well, so you can lose money you invest in stocks.\n\nIf a company goes bankrupt and its assets are liquidated, common stockholders are the last in line to share in the proceeds. The company’s bondholders will be paid first, then holders of preferred stock. If you are a common stockholder, you get whatever is left, which may be nothing.\n\nEven when companies aren’t in danger of failing, their stock price may fluctuate up or down. Large company stocks as a group, for example, have lost money on average about one out of every three years. If you have to sell shares on a day when the stock price is below the price you paid for the shares, you will lose money on the sale.\n\nMarket fluctuations can be unnerving to some investors. A stock’s price can be affected by factors inside the company, such as a faulty product, or by events the company has no control over, such as political or market events.\n\nStocks usually are one part of an investor’s holdings. If you are young and saving for a long-term goal such as retirement, you may want to hold more stocks than bonds. Investors nearing or in retirement may want to hold more bonds than stocks.\n\nThe risks of stock holdings can be offset in part by investing in a number of different stocks. Investing in other kinds of assets that are not stocks, such as bonds, is another way to offset some of the risks of owning stocks.\n\n## How to buy and sell stocks\nYou can buy and sell stocks through:\n\n- A direct stock plan\n- A dividend reinvestment plan\n- A discount or full-service broker\n- A stock fund\n\n**Direct stock plans.** Some companies allow you to buy or sell their stock directly through them without using a broker. This saves on commissions, but you may have to pay other fees to the plan, including if you transfer shares to a broker to sell them. Some companies limit direct stock plans to employees of the company or existing shareholders. Some require minimum amounts for purchases or account levels.\n\nDirect stock plans usually will not allow you to buy or sell shares at a specific market price or at a specific time. Instead, the company will buy or sell shares for the plan at set times — such as daily, weekly, or monthly — and at an average market price. Depending on the plan, you may be able to automate your purchases and have the cost deducted automatically from your savings account.\n\n**Dividend reinvestment plans.** These plans allow you to buy more shares of a stock you already own by reinvesting dividend payments into the company. You must sign an agreement with the company to have this done. Check with the company or your brokerage firm to see if you will be charged for this service.\n\n**Discount or full-service broker.** Brokers buy and sell shares for customers for a fee, known as a commission.\n\n**Stock funds** are another way to buy stocks. These are a type of mutual fund that invests primarily in stocks. Depending on its investment objective and policies, a stock fund may concentrate on a particular type of stock, such as blue chips, large-cap value stocks, or mid-cap growth stocks. Stock funds are offered by investment companies and can be purchased directly from them or through a broker or adviser.\n\n## Understanding fees\nBuying and selling stocks entails fees. A direct stock plan or a dividend reinvestment plan may charge you a fee for that service. Brokers who buy and sell stocks for you charge a commission. A discount brokerage charges lower commissions than what you would pay at a full-service brokerage. But generally you have to research and choose investments by yourself. A full-service brokerage costs more, but the higher commissions pay for investment advice based on that firm’s research.\n\n## Avoiding fraud\nStocks in public companies are registered with the SEC and in most cases, public companies are required to file reports to the SEC quarterly and annually. Annual reports include financial statements that have been audited by an independent audit firm. Information on public companies can be found on the SEC’s EDGAR system.","meta_canonical":null,"ml_categories_json":"{\"\/Finance\":987,\"\/Finance\/Investing\":985,\"\/Finance\/Investing\/Stocks_and_Bonds\":976}","ml_types_json":"{\"\/Core_Page\":532,\"\/Core_Page\/FAQ_Page\":529}","ml_intent_types_json":"{\"Informational\":999}","meta_language":"en","attrs_author":null,"attrs_publish_time":0,"attrs_original_publish_time":1582524592,"attrs_is_republished":0,"attrs_nr_words":"1897","attrs_boilerpipe_nr_words":"1171","body_ext_links_number":20,"body_int_links_number":125,"meta_nofollow":0,"meta_noarchive":0,"props_was_rendered":1,"src_redirect":"","download_time_msec":182,"download_ttfb_msec":176,"download_size":14625}

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When you own a share of stock, you own part of a company. Learn about stocks. Get answers to stock FAQs from the SEC’s investor education staff.

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What are stocks? Stocks are a type of security that gives stockholders a share of ownership in a company. Stocks also are called “equities.” Investors buy stocks for various reasons. Here are some of them: Capital appreciation, which occurs when a stock rises in price Dividend payments, which come when the company distributes some of its earnings to stockholders Ability to vote shares and influence the company Companies issue stock to get money for various things, which may include: Paying off debt Launching new products Expanding into new markets or regions Enlarging facilities or building new ones What kinds of stock are there? What are the benefits and risks of stocks? How to buy and sell stocks Understanding fees Avoiding fraud What kinds of stocks are there? There are two main kinds of stocks, common stock and preferred stock. Common stock entitles owners to vote at shareholder meetings and receive dividends. Preferred stockholders usually don’t have voting rights but they receive dividend payments before common stockholders do, and have priority over common stockholders if the company goes bankrupt and its assets are liquidated. Common and preferred stocks may fall into one or more of the following categories: Growth stocks have earnings growing at a faster rate than the market average. They rarely pay dividends and investors buy them in the hope of capital appreciation. A start-up technology company is likely to be a growth stock. Income stocks pay dividends consistently. Investors buy them for the income they generate. An established utility company is likely to be an income stock. Value stocks have a low price-to-earnings (PE) ratio, meaning they are cheaper to buy than stocks with a higher PE. Value stocks may be growth or income stocks, and their low PE ratio may reflect the fact that they have fallen out of favor with investors for some reason. People buy value stocks in the hope that the market has overreacted and that the stock’s price will rebound. Blue-chip stocks are shares in large, well-known companies with a solid history of growth. They generally pay dividends. Another way to categorize stocks is by the size of the company, as shown in its market capitalization. There are large-cap, mid-cap, and small-cap stocks. Shares in very small companies are sometimes called “microcap” stocks. The very lowest priced stocks are known as “penny stocks.” These companies may have little or no earnings. Penny stocks do not pay dividends and are highly speculative. What are the benefits and risks of stocks? Stocks offer investors the greatest potential for growth (capital appreciation) over the long haul. Investors willing to stick with stocks over long periods of time, say 15 years, generally have been rewarded with strong, positive returns. But stock prices move down as well as up. There’s no guarantee that the company whose stock you hold will grow and do well, so you can lose money you invest in stocks. If a company goes bankrupt and its assets are liquidated, common stockholders are the last in line to share in the proceeds. The company’s bondholders will be paid first, then holders of preferred stock. If you are a common stockholder, you get whatever is left, which may be nothing. Even when companies aren’t in danger of failing, their stock price may fluctuate up or down. Large company stocks as a group, for example, have lost money on average about one out of every three years. If you have to sell shares on a day when the stock price is below the price you paid for the shares, you will lose money on the sale. Market fluctuations can be unnerving to some investors. A stock’s price can be affected by factors inside the company, such as a faulty product, or by events the company has no control over, such as political or market events. Stocks usually are one part of an investor’s holdings. If you are young and saving for a long-term goal such as retirement, you may want to hold more stocks than bonds. Investors nearing or in retirement may want to hold more bonds than stocks. The risks of stock holdings can be offset in part by investing in a number of different stocks. Investing in other kinds of assets that are not stocks, such as bonds, is another way to offset some of the risks of owning stocks. How to buy and sell stocks You can buy and sell stocks through: A direct stock plan A dividend reinvestment plan A discount or full-service broker A stock fund Direct stock plans. Some companies allow you to buy or sell their stock directly through them without using a broker. This saves on commissions, but you may have to pay other fees to the plan, including if you transfer shares to a broker to sell them. Some companies limit direct stock plans to employees of the company or existing shareholders. Some require minimum amounts for purchases or account levels. Direct stock plans usually will not allow you to buy or sell shares at a specific market price or at a specific time. Instead, the company will buy or sell shares for the plan at set times — such as daily, weekly, or monthly — and at an average market price. Depending on the plan, you may be able to automate your purchases and have the cost deducted automatically from your savings account. Dividend reinvestment plans. These plans allow you to buy more shares of a stock you already own by reinvesting dividend payments into the company. You must sign an agreement with the company to have this done. Check with the company or your brokerage firm to see if you will be charged for this service. Discount or full-service broker. Brokers buy and sell shares for customers for a fee, known as a commission. Stock funds are another way to buy stocks. These are a type of mutual fund that invests primarily in stocks. Depending on its investment objective and policies, a stock fund may concentrate on a particular type of stock, such as blue chips, large-cap value stocks, or mid-cap growth stocks. Stock funds are offered by investment companies and can be purchased directly from them or through a broker or adviser. Understanding fees Buying and selling stocks entails fees. A direct stock plan or a dividend reinvestment plan may charge you a fee for that service. Brokers who buy and sell stocks for you charge a commission. A discount brokerage charges lower commissions than what you would pay at a full-service brokerage. But generally you have to research and choose investments by yourself. A full-service brokerage costs more, but the higher commissions pay for investment advice based on that firm’s research. Avoiding fraud Stocks in public companies are registered with the SEC and in most cases, public companies are required to file reports to the SEC quarterly and annually. Annual reports include financial statements that have been audited by an independent audit firm. Information on public companies can be found on the SEC’s EDGAR system.

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[International Investing](https://www.investor.gov/introduction-investing/investing-basics/investment-products/international-investing) - Mutual Funds and Exchange-Traded Funds (ETFs) - [Alternative Mutual Funds](https://www.investor.gov/introduction-investing/investing-basics/investment-products/mutual-funds-and-exchange-traded-funds-etfs/alternative-mutual-funds) - [Leveraged Loan Funds](https://www.investor.gov/introduction-investing/investing-basics/investment-products/mutual-funds-and-exchange-traded-0) - [Exchange-Traded Funds (ETFs)](https://www.investor.gov/introduction-investing/investing-basics/investment-products/mutual-funds-and-exchange-traded-2) - [Index Funds](https://www.investor.gov/introduction-investing/investing-basics/investment-products/mutual-funds-and-exchange-traded-4) - [Money Market Funds](https://www.investor.gov/introduction-investing/investing-basics/investment-products/mutual-funds-and-exchange-traded-5) - [Mutual Funds](https://www.investor.gov/introduction-investing/investing-basics/investment-products/mutual-funds-and-exchange-traded-funds-etfs/mutual-funds) - [Smart Beta, Quant Funds and other Non- Traditional Index Funds](https://www.investor.gov/introduction-investing/investing-basics/investment-products/mutual-funds-and-exchange-traded-3) - [Target Date Funds](https://www.investor.gov/introduction-investing/investing-basics/investment-products/mutual-funds-and-exchange-traded-6) [Expand]() - [Options or Derivatives](https://www.investor.gov/introduction-investing/investing-basics/glossary/options) - Private Investment Funds - [Hedge Funds](https://www.investor.gov/introduction-investing/investing-basics/investment-products/private-investment-funds/hedge-funds) - [Private Equity Funds](https://www.investor.gov/introduction-investing/investing-basics/investment-products/private-investment-funds/private-equity) [Expand]() - [Real Estate Investment Trusts (REITs)](https://www.investor.gov/introduction-investing/investing-basics/investment-products/real-estate-investment-trusts-reits) - [Stocks](https://www.investor.gov/introduction-investing/investing-basics/investment-products/stocks) - [Structured Notes with Principal Protection](https://www.investor.gov/introduction-investing/investing-basics/investment-products/structured-notes-principal-protection) - [Variable Life Products](https://www.investor.gov/introduction-investing/investing-basics/investment-products/variable-life) [Expand]() - [What is Risk?](https://www.investor.gov/introduction-investing/investing-basics/what-risk) - [Glossary](https://www.investor.gov/introduction-investing/investing-basics/glossary) - [Role of the SEC](https://www.investor.gov/introduction-investing/investing-basics/role-sec) - [How to Submit Comments to the SEC](https://www.investor.gov/introduction-investing/investing-basics/role-sec/how-submit-comments-sec) - [Researching the Federal Securities Laws Through the SEC Website](https://www.investor.gov/introduction-investing/investing-basics/role-sec/researching-federal-securities-laws-through-sec-website) - [The Laws That Govern the Securities Industry](https://www.investor.gov/introduction-investing/investing-basics/role-sec/laws-govern-securities-industry) [Expand]() # Stocks - FAQs ## What are stocks? Stocks are a type of security that gives stockholders a share of ownership in a company. Stocks also are called “equities.” Investors buy stocks for various reasons. Here are some of them: - Capital appreciation, which occurs when a stock rises in price - Dividend payments, which come when the company distributes some of its earnings to stockholders - Ability to vote shares and influence the company Companies issue stock to get money for various things, which may include: - Paying off debt - Launching new products - Expanding into new markets or regions - Enlarging facilities or building new ones [What kinds of stock are there?](https://www.investor.gov/introduction-investing/investing-basics/investment-products/stocks#Kinds) [What are the benefits and risks of stocks?](https://www.investor.gov/introduction-investing/investing-basics/investment-products/stocks#Risks) [How to buy and sell stocks](https://www.investor.gov/introduction-investing/investing-basics/investment-products/stocks#Buy%20and%20sell) [Understanding fees](https://www.investor.gov/introduction-investing/investing-basics/investment-products/stocks#Fees) [Avoiding fraud](https://www.investor.gov/introduction-investing/investing-basics/investment-products/stocks#Fraud) ## What kinds of stocks are there? There are two main kinds of stocks, common stock and preferred stock. **Common** stock entitles owners to vote at shareholder meetings and receive dividends. **Preferred** stockholders usually don’t have voting rights but they receive dividend payments before common stockholders do, and have priority over common stockholders if the company goes bankrupt and its assets are liquidated. Common and preferred stocks may fall into one or more of the following categories: - **Growth stocks** have earnings growing at a faster rate than the market average. They rarely pay dividends and investors buy them in the hope of capital appreciation. A start-up technology company is likely to be a growth stock. - **Income stocks** pay dividends consistently. Investors buy them for the income they generate. An established utility company is likely to be an income stock. - **Value stocks** have a low price-to-earnings (PE) ratio, meaning they are cheaper to buy than stocks with a higher PE. Value stocks may be growth or income stocks, and their low PE ratio may reflect the fact that they have fallen out of favor with investors for some reason. People buy value stocks in the hope that the market has overreacted and that the stock’s price will rebound. - **Blue-chip stocks** are shares in large, well-known companies with a solid history of growth. They generally pay dividends. Another way to categorize stocks is by the size of the company, as shown in its market capitalization. There are large-cap, mid-cap, and small-cap stocks. Shares in very small companies are sometimes called “microcap” stocks. The very lowest priced stocks are known as “penny stocks.” These companies may have little or no earnings. Penny stocks do not pay dividends and are highly speculative. ## What are the benefits and risks of stocks? Stocks offer investors the greatest potential for growth (capital appreciation) over the long haul. Investors willing to stick with stocks over long periods of time, say 15 years, generally have been rewarded with strong, positive returns. But stock prices move down as well as up. There’s no guarantee that the company whose stock you hold will grow and do well, so you can lose money you invest in stocks. If a company goes bankrupt and its assets are liquidated, common stockholders are the last in line to share in the proceeds. The company’s bondholders will be paid first, then holders of preferred stock. If you are a common stockholder, you get whatever is left, which may be nothing. Even when companies aren’t in danger of failing, their stock price may fluctuate up or down. Large company stocks as a group, for example, have lost money on average about one out of every three years. If you have to sell shares on a day when the stock price is below the price you paid for the shares, you will lose money on the sale. Market fluctuations can be unnerving to some investors. A stock’s price can be affected by factors inside the company, such as a faulty product, or by events the company has no control over, such as political or market events. Stocks usually are one part of an investor’s holdings. If you are young and saving for a long-term goal such as retirement, you may want to hold more stocks than bonds. Investors nearing or in retirement may want to hold more bonds than stocks. The risks of stock holdings can be offset in part by investing in a number of different stocks. Investing in other kinds of assets that are not stocks, such as bonds, is another way to offset some of the risks of owning stocks. ## How to buy and sell stocks You can buy and sell stocks through: - A direct stock plan - A dividend reinvestment plan - A discount or full-service broker - A stock fund **Direct stock plans.** Some companies allow you to buy or sell their stock directly through them without using a broker. This saves on commissions, but you may have to pay other fees to the plan, including if you transfer shares to a broker to sell them. Some companies limit direct stock plans to employees of the company or existing shareholders. Some require minimum amounts for purchases or account levels. Direct stock plans usually will not allow you to buy or sell shares at a specific market price or at a specific time. Instead, the company will buy or sell shares for the plan at set times — such as daily, weekly, or monthly — and at an average market price. Depending on the plan, you may be able to automate your purchases and have the cost deducted automatically from your savings account. **Dividend reinvestment plans.** These plans allow you to buy more shares of a stock you already own by reinvesting dividend payments into the company. You must sign an agreement with the company to have this done. Check with the company or your brokerage firm to see if you will be charged for this service. **Discount or full-service broker.** Brokers buy and sell shares for customers for a fee, known as a commission. **Stock funds** are another way to buy stocks. These are a type of mutual fund that invests primarily in stocks. Depending on its investment objective and policies, a stock fund may concentrate on a particular type of stock, such as blue chips, large-cap value stocks, or mid-cap growth stocks. Stock funds are offered by investment companies and can be purchased directly from them or through a broker or adviser. ## Understanding fees Buying and selling stocks entails fees. A direct stock plan or a dividend reinvestment plan may charge you a fee for that service. Brokers who buy and sell stocks for you charge a commission. A discount brokerage charges lower commissions than what you would pay at a full-service brokerage. But generally you have to research and choose investments by yourself. A full-service brokerage costs more, but the higher commissions pay for investment advice based on that firm’s research. ## Avoiding fraud Stocks in public companies are registered with the SEC and in most cases, public companies are required to file reports to the SEC quarterly and annually. Annual reports include financial statements that have been audited by an independent audit firm. Information on public companies can be found on the SEC’s EDGAR system. ## Featured Content [![](https://www.investor.gov/sites/investorgov/files/styles/card_image/public/2026-03/3x2-trump-accounts_original.png?itok=0MkEO5o1) Jumpstart Your Child's Financial Future Learn how to enroll in a Trump Account today\!](https://www.investor.gov/introduction-investing/investing-basics/investment-accounts/tax-advantaged-accounts/trump-accounts) [![](https://www.investor.gov/sites/investorgov/files/styles/card_image/public/2024-04/image004.png?itok=mGGSJ34r) Use Financial Tools and Calculators Access RMD, compound interest and savings goal calculators plus other financial tools.](https://www.investor.gov/free-financial-planning-tools) [![](https://www.investor.gov/sites/investorgov/files/styles/card_image/public/2026-03/Screenshot%202026-03-31%20at%204.39.27%E2%80%AFPM.png?itok=OIgyFUzg) Learn About Tax-Advantaged Accounts 401(k) plans, IRAs, HSAs, 529 plans, Trump Accounts, and others offer tax benefits.](https://www.investor.gov/introduction-investing/investing-basics/investment-accounts/tax-advantaged-accounts) [![](https://www.investor.gov/sites/investorgov/files/styles/card_image/public/2026-03/Financial%20Independence.png?itok=jBVKR4RG) Test Your Investing Knowledge Participate in National Financial Literacy Month by taking our financial independence investing quiz\!](https://www.investor.gov/additional-resources/spotlight/investing-quizzes) ## Never stop learning about investing\! 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## What are stocks? Stocks are a type of security that gives stockholders a share of ownership in a company. Stocks also are called “equities.” Investors buy stocks for various reasons. Here are some of them: - Capital appreciation, which occurs when a stock rises in price - Dividend payments, which come when the company distributes some of its earnings to stockholders - Ability to vote shares and influence the company Companies issue stock to get money for various things, which may include: - Paying off debt - Launching new products - Expanding into new markets or regions - Enlarging facilities or building new ones [What kinds of stock are there?](https://www.investor.gov/introduction-investing/investing-basics/investment-products/stocks#Kinds) [What are the benefits and risks of stocks?](https://www.investor.gov/introduction-investing/investing-basics/investment-products/stocks#Risks) [How to buy and sell stocks](https://www.investor.gov/introduction-investing/investing-basics/investment-products/stocks#Buy%20and%20sell) [Understanding fees](https://www.investor.gov/introduction-investing/investing-basics/investment-products/stocks#Fees) [Avoiding fraud](https://www.investor.gov/introduction-investing/investing-basics/investment-products/stocks#Fraud) ## What kinds of stocks are there? There are two main kinds of stocks, common stock and preferred stock. **Common** stock entitles owners to vote at shareholder meetings and receive dividends. **Preferred** stockholders usually don’t have voting rights but they receive dividend payments before common stockholders do, and have priority over common stockholders if the company goes bankrupt and its assets are liquidated. Common and preferred stocks may fall into one or more of the following categories: - **Growth stocks** have earnings growing at a faster rate than the market average. They rarely pay dividends and investors buy them in the hope of capital appreciation. A start-up technology company is likely to be a growth stock. - **Income stocks** pay dividends consistently. Investors buy them for the income they generate. An established utility company is likely to be an income stock. - **Value stocks** have a low price-to-earnings (PE) ratio, meaning they are cheaper to buy than stocks with a higher PE. Value stocks may be growth or income stocks, and their low PE ratio may reflect the fact that they have fallen out of favor with investors for some reason. People buy value stocks in the hope that the market has overreacted and that the stock’s price will rebound. - **Blue-chip stocks** are shares in large, well-known companies with a solid history of growth. They generally pay dividends. Another way to categorize stocks is by the size of the company, as shown in its market capitalization. There are large-cap, mid-cap, and small-cap stocks. Shares in very small companies are sometimes called “microcap” stocks. The very lowest priced stocks are known as “penny stocks.” These companies may have little or no earnings. Penny stocks do not pay dividends and are highly speculative. ## What are the benefits and risks of stocks? Stocks offer investors the greatest potential for growth (capital appreciation) over the long haul. Investors willing to stick with stocks over long periods of time, say 15 years, generally have been rewarded with strong, positive returns. But stock prices move down as well as up. There’s no guarantee that the company whose stock you hold will grow and do well, so you can lose money you invest in stocks. If a company goes bankrupt and its assets are liquidated, common stockholders are the last in line to share in the proceeds. The company’s bondholders will be paid first, then holders of preferred stock. If you are a common stockholder, you get whatever is left, which may be nothing. Even when companies aren’t in danger of failing, their stock price may fluctuate up or down. Large company stocks as a group, for example, have lost money on average about one out of every three years. If you have to sell shares on a day when the stock price is below the price you paid for the shares, you will lose money on the sale. Market fluctuations can be unnerving to some investors. A stock’s price can be affected by factors inside the company, such as a faulty product, or by events the company has no control over, such as political or market events. Stocks usually are one part of an investor’s holdings. If you are young and saving for a long-term goal such as retirement, you may want to hold more stocks than bonds. Investors nearing or in retirement may want to hold more bonds than stocks. The risks of stock holdings can be offset in part by investing in a number of different stocks. Investing in other kinds of assets that are not stocks, such as bonds, is another way to offset some of the risks of owning stocks. ## How to buy and sell stocks You can buy and sell stocks through: - A direct stock plan - A dividend reinvestment plan - A discount or full-service broker - A stock fund **Direct stock plans.** Some companies allow you to buy or sell their stock directly through them without using a broker. This saves on commissions, but you may have to pay other fees to the plan, including if you transfer shares to a broker to sell them. Some companies limit direct stock plans to employees of the company or existing shareholders. Some require minimum amounts for purchases or account levels. Direct stock plans usually will not allow you to buy or sell shares at a specific market price or at a specific time. Instead, the company will buy or sell shares for the plan at set times — such as daily, weekly, or monthly — and at an average market price. Depending on the plan, you may be able to automate your purchases and have the cost deducted automatically from your savings account. **Dividend reinvestment plans.** These plans allow you to buy more shares of a stock you already own by reinvesting dividend payments into the company. You must sign an agreement with the company to have this done. Check with the company or your brokerage firm to see if you will be charged for this service. **Discount or full-service broker.** Brokers buy and sell shares for customers for a fee, known as a commission. **Stock funds** are another way to buy stocks. These are a type of mutual fund that invests primarily in stocks. Depending on its investment objective and policies, a stock fund may concentrate on a particular type of stock, such as blue chips, large-cap value stocks, or mid-cap growth stocks. Stock funds are offered by investment companies and can be purchased directly from them or through a broker or adviser. ## Understanding fees Buying and selling stocks entails fees. A direct stock plan or a dividend reinvestment plan may charge you a fee for that service. Brokers who buy and sell stocks for you charge a commission. A discount brokerage charges lower commissions than what you would pay at a full-service brokerage. But generally you have to research and choose investments by yourself. A full-service brokerage costs more, but the higher commissions pay for investment advice based on that firm’s research. ## Avoiding fraud Stocks in public companies are registered with the SEC and in most cases, public companies are required to file reports to the SEC quarterly and annually. Annual reports include financial statements that have been audited by an independent audit firm. Information on public companies can be found on the SEC’s EDGAR system.

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