Stocks are a type of security that represents ownership in a company or a portion of its assets. They can be bought and sold on stock exchanges, offering investors the potential for growth and capital appreciation.
Stocks are represented by shares in a company and give shareholders ownership rights. When you buy a stock, you essentially become a part-owner of that company, granting you the right to vote on certain matters and potentially receive dividends.
Stock exchanges, such as the New York Stock Exchange (NYSE) and the NASDAQ, allow buyers and sellers to trade stocks. These platforms provide a platform for companies to raise capital by issuing new shares or repurchasing old ones.
Stock market trends refer to the direction of stock prices over time. Some common trends include bull markets, bear markets, and neutral markets, which are influenced by economic indicators such as GDP growth, inflation rates, and interest rates.