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

You can purchase common stock for many reasons. We typically purchase common stock of public company's for our clients because we may have genuine interest or belief in a business or because we are looking for a stable company that offers dividends, growth or value.

*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.

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

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