What a Stock Is

A stock, also known as a share or equity, represents a small piece of ownership in a publicly-traded company. When you buy a company’s stock, you become a shareholder, which means you own a tiny fraction of that corporation.
Companies sell these shares to the public to raise money for growth and new projects, a process known as an Initial Public Offering (IPO).
The value of your share is tied to the company’s perceived value and its future prospects, which is reflected in its share price.

How Investing Works

The primary goal of investing in stocks is to make money through capital appreciation—buying shares at one price and selling them later at a higher price. Some companies also share a portion of their profits with shareholders through regular payments called dividends.
Stocks are traded on exchanges, like the New York Stock Exchange (NYSE) or Nasdaq, and their prices fluctuate constantly based on supply, demand, and the company’s performance. While stocks have historically been one of the best ways to build long-term wealth, their prices can be volatile, meaning there’s inherent risk as their value can go down as well as up.

Disclaimer: All content on this platform is strictly educational. Trading involves risk, and success depends on individual effort, market conditions, and applied knowledge.