A stock is a type of security that represents partial ownership in a corporation. When you own a stock, you own a fraction of the company proportional to the number of shares you hold relative to the total shares outstanding. This ownership entitles you to a claim on a portion of the company's assets and earnings, and often includes voting rights in company matters, depending on the type of stock you own
. Corporations issue stocks primarily to raise capital to fund their operations and growth. Stocks are bought and sold mainly on stock exchanges, such as the New York Stock Exchange (NYSE) or NASDAQ, and their prices fluctuate based on the company's performance, market conditions, and investor sentiment
. There are two main types of stocks: common stock, which usually grants voting rights and potential dividends, and preferred stock, which may have priority for dividends but often lacks voting rights
. Investors buy stocks to potentially grow their investment value over time, earn dividends, or profit from price changes
. In summary, a stock is a financial instrument that gives you equity ownership in a company, allowing you to share in its profits and growth, while also exposing you to the risks associated with the company's performance
