What are Stocks?
Stocks, also known as equities or shares, represent ownership in a company. When you buy a stock, you essentially become a part-owner of that company.
Stocks can be traded on various stock exchanges, such as the New York Stock Exchange (NYSE) or NASDAQ. The value of a stock is determined by supply and demand in the market.
Types of Stocks
- Common Stock**: Represents ownership in a company with voting rights. Shareholders have the right to vote on company decisions.
- Preferred Stock**: Has a higher claim on assets and dividends than common stock, but does not come with voting rights.
