A stock is a piece of a company that you can buy and sell on a stock exchange. Companies initially issue stocks through an Initial Public Offering (IPO) as a way to raise funds for their business.
Investors who buy stocks, in turn, become shareholders and acquire a stake in the companies they bought stock from.
As Investopedia explains:
"If a company has 1,000 shares of stock outstanding and one person owns 100 shares, that person would own and have claim to 10% of the company's assets and earnings".
Investing in US stocks with Passfolio is easy. To start, you'll need to open your account by submitting some basic information. Depending on your residence country, additional documents such as your photo ID and proof of address will be required.
After signing up, you can use the Passfolio app to deposit just $100 to start. We accept deposits via wire transfers, TED and other methods. Once you deposit, you will have a USD balance in your account available to use for buying and selling stocks listed in the US stock market.
With Passfolio, you can buy and sell US stocks as many times as you want, without worrying about commission fees.*
* Securities less than $5 cost $0.02/share. Please see our disclosures on other charges.
At Passfolio, there are more than 3,000 US stocks available for trading. Choosing which US stock to buy depends on your investment profile and strategy, and Passfolio helps you by providing categories of stocks, charts and detailed stats for each asset.
In general, people who invest in stocks can profit in two ways. Remember you can make money, but also lose money. Investing involves risk.
The first happens when the value of an asset increases - which may occur due to increased company earnings or speculation.
You can also earn money from certain stocks that pay dividends, since many companies distribute part of their earnings to shareholders.
The US is home to some of the most famous companies in the world, such as Apple, Amazon and Google.
According to historical records, the average annual return since the S&P500 inception in 1926 through 2018 is approximately 10%–11% (source).
Past performance does not guarantee future results.
The US stock market is the most liquid in the world, with more than 30 trillion dollars in capitalization and 30 trillion dollars in trading volume (source).
More than 250 foreign companies such as XP, Inc. and Alibaba from 34 countries around the world trade in the US. market so you can have a global portfolio (source).
You can own investments in US dollars, the most widely used currency in the world.