What is a Stock?

What is a stock, you say?

Owning common stock in a public company represents a direct and partial ownership interest in a public company. What is the purpose of investing directly in a company? Equity. 

Equity can potentially give you a few benefits that an ETF or Mutual Fund cannot. Here are the key potential benefits to owning common stock in a public company: 

  • Dividends (ETF's and Mutual Fuds can pay dividends too)
  • Growth
  • Inflation Hedge
  • Voting Rights
  • Lower Cost to Purchase vs. Mutual Fund

*The benefits listed above may not be all the benefits associated with owning stocks. Owning stocks does include the potential for loss of some or all of your principal investment. Owning individual stocks can be more risky than owning an ETF or mutual fund due to it's lack of diversification as a single stock. Owners, advisors and or staff may own stock or ETF's recommended to client's and may purchase or sell stocks or ETF's at or around the same time it buy's or sells for client's. This may create a conflict of interest. Kerr Wealth Managment does manage portfolio's for owners, staff or advisors as individual clients specific to their goals like it does for customers. This is not an endorsement, recommendation or solicitation to purhcase individual stocks. 

Are Stocks Right for Your Portfolio? Take a Free Consultation with a Kerr Advisor Today.

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