Stocks are equity investments.  In simple terms, stocks are found in the form of shares that you buy, granting you part ownership into a corporation. However, although you own stock and ownership in a company, you may still only be a small fragment among a corporation that may issue millions of shares. Ownership of a company is a very powerful thing, and very easy, too. By owning shares of stock in a company, you have the power each and every day to either hold on to your shares or to sell them.

Not only is it a fun game, but for the most part it generally works out for your own financial good. The best reason to buy stock is with the hopes that your shares will increase in value and you will be able to sell them in the future for a profit (whether it be a day, month, or even years later).  As well, stocks generate income in the form of dividends.  Some stocks may do one or the other, while some operate under both conditions.  

It is important to note that stocks can be very volatile. It is never guaranteed that your stocks will increase in value over time.  It is important to watch the market each day, particularly the stocks you have shares in or the stocks you are interested in getting involved with.  Learn the trends and patterns of your stocks, and know when and why they are increasing or decreasing in value.  It is up to you if, and when, you choose to sell your shares.  Stocks may change value rather quickly within a short frame; this is significant because stocks, in general, have historically provided stronger returns than other forms of securities.

In order to measure the return of a specific share/stock, it is important to know the exact amount of money you bought the stock with.  From there, you will calculate the total return by finding the difference from your original value, whether it has decreased or increased.  For example, suppose you bought a stock one year ago at $20 per share, which paid a $0.50 per share dividend, and now sells for $21.75. Your total return for the year would be 11.25%, calculated by adding the $1.75 per share increase in price and the $0.50 per share dividend and then dividing by the original purchase price ($21.75 – $20 = $1.75 + 0.50 = $2.25 ÷ $20 = 0.1125 or 11.25%).