What is Stocks?

Stocks represent ownership in a company, allowing investors to buy shares and become part-owners. Companies issue stocks to raise capital for growth and development. There are two main types of stocks: common stocks, which give shareholders voting rights and potential dividends, and preferred stocks, which offer fixed dividends and priority in asset liquidation but typically lack voting rights. Stocks are traded on exchanges like the NYSE and NASDAQ, with prices determined by supply and demand, company performance, and economic factors.

Investing in stocks can lead to potential growth and dividend income, but it also carries risks such as market volatility and economic downturns. To start investing, research companies and market trends, open a brokerage account, diversify your portfolio, and regularly monitor your investments. Understanding these fundamentals can help you make informed decisions and potentially grow your wealth through stock investments.