stock-purchase

Vocabulary Word

Definition

A 'stock purchase' refers to buying shares or 'stocks' of a company. When you buy stocks, you're essentially purchasing a small portion of that company and have the right to a portion of the company's profits.

Examples in Different Contexts

In equity investment, a stock purchase involves buying shares of a company, giving the investor ownership interest and potentially dividends. An investor might say, 'Making informed stock purchases requires thorough research into the company's financial health, market position, and growth prospects.'

Practice Scenarios

Finance

Scenario:

Blue-chip companies have been consistently performing well. It's an appropriate time to diversify our portfolio.

Response:

Yes, purchasing stocks from these companies can indeed provide stability to our portfolio.

Business

Scenario:

ABC Enterprises has shown robust growth in the last quarter. We may want to consider expanding our investment scope.

Response:

Given their performance, making a stock purchase in ABC Enterprises seems like a beneficial move. We should look into it.