A stock is a general term used to describe the ownership certificates of any company.
A stock is a security that represents the ownership of a fraction of a corporation.
Stocks are securities that represent an ownership share in a company.
For companies, issuing stock is a way to raise money to grow and invest in their business.
For investors, stocks are a way to grow their money and outpace inflation over time.
When you own stock in a company, you are called a shareholder because you share in the company's profits.
There are two main types of stocks:
Common: Common stock may pay dividends, but dividends are not guaranteed and the amount of the dividend is not fixed.
Preferred: Generally do not have voting rights, though they have a higher claim on assets and earnings than the common stockholders.
Other categories of stock that investors look at:
Public companies sell their stock through a
the stock market exchange like:
New York Stock Exchange