<topic sku="core" tNum="289164" author="sallyh" xmlns="x-schema:hhTopicSchema.xml"><index><title>Learn about stocks</title><category>investing</category><klink type="cncpt">Tell me about stocks</klink></index>
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<p>When you purchase stock shares in a company, you own a piece of the business. In return for your investment, you have the chance to earn <mdash/> or lose <mdash/> money depending on how well the company fares. You can earn money in the form of dividends or when the stock price rises above the price you paid for it. Companies offer their stock shares for sale as a way of financing their business ventures.</p>
<p>Stocks are generally considered high-risk investments compared to more conservative investments such as CDs or bonds. Changes in an industry's or company's prospects can cause a stock price to jump or dive drastically. Because playing the stock market is often a volatile business, it offers the possibility for high returns, which is what makes it so attractive to investors.</p>
<p>Many people invest in stocks as part of their <glossary>asset allocation</glossary>. They may also invest in bonds or other less risky investments to achieve an overall balanced portfolio. You can use Money's asset allocation planner to track your investments and help you reach your long-term financial goals.</p>
