Stocks

Stocks are financial instruments that represent ownership in a corporation. When you purchase stocks, you buy a share of a company's equity, entitling you to a portion of its assets and earnings. Stocks are commonly traded on stock exchanges, where investors can buy and sell them publicly. The value of a stock can fluctuate based on company performance, market conditions, and investor sentiment. Stocks are typically categorized into two main types: common stocks, which give shareholders voting rights and dividends, and preferred stocks, which usually provide fixed dividends but no voting rights. Investing in stocks can offer the potential for capital appreciation and income through dividends, but it also carries risks, including the potential loss of the invested capital.