Stocks

Stocks refer to the shares or units of ownership in a company or corporation that represent a claim on the company's assets and earnings. When an individual purchases stocks, they acquire an ownership stake in that company. Stocks are a form of equity investment and are typically bought and sold on stock exchanges. Investors can benefit from owning stocks through capital appreciation (an increase in the stock's price) and dividends (periodic payments made to shareholders from the company's profits). Stocks are classified into various categories, such as common stocks and preferred stocks, each with different rights and characteristics. They are considered a key component of financial markets and play a critical role in providing companies with capital for growth. Additionally, stock prices are influenced by numerous factors, including company performance, market conditions, and investor sentiment.