Stocks are the most common component of an investment portfolio. They refer to a portion or share of a company. It means that the owner of the stocks is a part owner of the company. The size of the ownership stake depends on the number of shares he owns.

A stock portfolio is a collection of stocks that you invest in with the hope of making a profit. By putting together a diverse portfolio that spans various sectors you’re able to become a more resilient investor. That’s because if one sector takes a hit, the investments you hold in other sectors aren’t necessarily affected.

Stocks are a source of income because as a company makes profits, it shares a portion of the profits through dividends.

Dividend is a share of profits and retained earnings that a company pays out to its shareholders. When a company generates a profit and accumulates retained earnings, to its stockholders. Also, as shares are bought, they can also be sold at a higher price, depending on the performance of the company.

Growth portfolio’s aim is to promote growth by taking greater risks, including investing in growing industries. Portfolios focused on growth investments typically offer both higher potential rewards and concurrent higher potential risk. Growth investing often involves investments in younger companies that have more potential for growth as compared to larger, well-established firms.