Share, In Plain Words — FirstStepsInvesting Decoder

Decoder · Kinds of investments

One unit of a stock or a fund. When people say they bought ten shares, they mean ten units. The price of one share does not tell you whether something is cheap or expensive — a $300 share is not 'better' than a $30 share.

For your first $100: What matters for your first $100 is not how many shares it buys. A fund can take your $100 whole, even if one share costs more than $100, at many brokerages.

Stock, in plain words Bond, in plain words Index, in plain words

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