Stocks

Stocks refer to the shares of ownership in a company or corporation. When an individual purchases stocks, they acquire a small part of that company, known as a share. Stocks are commonly bought and sold on stock exchanges, and their prices can fluctuate based on various factors including company performance, market conditions, and investor sentiment. Investors may buy stocks for capital appreciation, which occurs when the value of the shares increases over time, or for dividends, which are portions of a company’s earnings distributed to shareholders. Stocks are typically categorized into two main types: common stocks and preferred stocks, each with different rights and benefits. Investing in stocks can offer opportunities for growth, but it also carries risks, including the potential for loss.