Stocks

What Are Stocks?

• Stocks represent shares of ownership in a company.

• When you own stock, you become a shareholder, which means you have a stake in the company’s success.

• Companies issue stock to raise funds for their operations and growth.

Types of Stocks:

1. Common Stock:

   • Most common type of stock.

   • Shareholders have voting rights and can participate in company decisions.

   • Receive dividends (if declared by the company).

2. Preferred Stock:

   • Holders receive fixed dividends before common shareholders.

   • Usually no voting rights.

   • Considered a hybrid between stocks and bonds.

How Stocks Work:

• Stocks are listed on stock exchanges (e.g., NYSE, NASDAQ).

• Exchanges track supply, demand, and prices of each stock.

• Buyers and sellers trade stocks through these exchanges.