A share of ownership in a company, entitling the holder to profits and assets.
A stock is a share of ownership in a company. When you buy one share, you own a fractional stake in the company and have claims on a portion of profits (through dividends) and assets. Stocks are issued by corporations to raise capital; stockholders are the owners. Stocks are traded on exchanges (NYSE, Nasdaq) and their prices fluctuate based on company performance, economic conditions, and investor sentiment. Stocks offer growth potential—historically averaging 10% annual returns—but come with volatility and risk. Dividends provide income; capital appreciation provides growth. For long-term investors (10+ years), stocks are appropriate; for shorter timeframes or risk-averse investors, bonds or savings accounts are better. Understanding stock investing is foundational for building wealth.