Understanding what owning stock means is not always easy, especially when your retirement account actually owns shares of a mutual fund and not individual stocks. The simple answer is stock represents a partial ownership in a company. As the value of the company goes up and down so does the price of the stock. This will be explained in a separate post.
There is another benefit of owning stock that a lot of people aren’t aware of, but it is very easy to understand and it is called DIVIDENDS. Continue reading