Stock

Stock refers to the ownership shares in a company or corporation. When individuals purchase stock, they are essentially buying a small piece of that company, which entitles them to a proportionate claim on its assets and earnings. Stocks are issued by companies to raise capital for expansion, operations, and other expenses. They are bought and sold on stock exchanges, where their prices fluctuate based on supply and demand, as well as the company’s performance and broader market conditions.There are two main types of stock: common stock, which typically gives shareholders voting rights and potential dividends, and preferred stock, which usually offers fixed dividends and has a higher claim on assets in the event of liquidation but often does not provide voting rights.Investing in stocks can provide the potential for capital appreciation and income through dividends, though it also carries risks, including market volatility and the possibility of financial loss. Thus, stock ownership is a key aspect of corporate finance and investment strategies, contributing to personal and institutional portfolios.