What are Stocks?
Stocks, also known as equities or shares, represent ownership in a company. When you buy a stock, you essentially own a small piece of that company.
Key Characteristics
- A stock represents ownership in a company.
- Stock prices fluctuate based on the company's performance, market conditions, and investor sentiment.
- Companies can raise capital through stocks by issuing them to investors.
Types of Stocks
Below are some common types of stocks:
- Common Stock: Represents ownership in a company.
- Has a higher claim on assets and dividends than common stock.
Offers the ability to purchase additional shares at a discount.