What Are Stocks?
Stocks, also known as equities or shares, represent ownership in a company. When you buy a stock, you become a part-owner of that company and have the right to vote on major decisions.
Why Buy Stocks?
Buying stocks can provide a way to invest in the market without directly owning a company. You can diversify your portfolio by investing in various industries and sectors, which can help spread risk.
Types of Stocks
There are different types of stocks, including:
- Dividend stocks: These stocks pay dividends to shareholders on a regular basis.
- Growth stocks: These stocks have the potential for high growth rates over time.
- Dividend aristocrats: These are stocks that have consistently paid dividends for 25 years or more.