Stocks, also known as shares or equities, represent ownership in a company. When you buy a stock, you are essentially buying a small piece of that company. As a shareholder, you have the right to vote on certain company decisions and you may receive dividends if the company distributes profits to its shareholders.
Stocks are traded on stock exchanges, such as the New York Stock Exchange or Nasdaq. The price of a stock can fluctuates based on various factors, such as the performance of the company, industry trends, and global economic conditions.
There are different types of stocks, including common stocks and preferred stocks. Common stocks typically offer voting rights and potential for higher returns but come with more risk. Preferred stocks usually do not offer voting rights but provide a fixed dividend payment and lower risk.
Investing in stocks can be a way to potentially grow your wealth over time, but it is important to do your research and understand the risks involved before making any investments.