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:
Common Stock:
Most common type of stock.
Shareholders have voting rights and can participate in company decisions.
Receive dividends (if declared by the company).
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.
Last updated
Was this helpful?