What are Stocks?

Stocks, also known as equities or shares, represent ownership in a company. When you buy stocks, you become a part-owner of that company.

• A stock represents one share of the company's total outstanding shares.
• The value of your stock is determined by its market price and can fluctuate based on various factors such as the company's performance, industry trends, and overall market conditions.

Types of Stocks

There are different types of stocks, including:

• Common Stock: Representing ownership in the company and giving shareholders voting rights.
• Preferred Stock: Having a higher claim on assets and earnings than common stock but typically having no voting rights.
• Growth Stocks: Companies with high growth potential and often subject to higher volatility.