Stocks, also known as shares or equities, represent fractional ownership in a corporation. When you buy a stock, you essentially own a small part of that company proportional to the number of shares you hold relative to the total shares outstanding

. This ownership entitles you to a claim on the company's assets and earnings, and sometimes voting rights in corporate decisions, depending on the type of stock

. Corporations issue stocks primarily to raise capital for business operations, expansion, or other projects. Investors buy stocks hoping the company will grow, which can increase the value of their shares and potentially provide dividend income

. There are two main types of stocks:

• Common stock: Usually grants voting rights and the potential to receive dividends that may grow as the company profits grow.
• Preferred stock: Generally does not provide voting rights but often comes with a fixed dividend and priority over common stock in dividend payments and asset liquidation

Stocks are traded mainly on public stock exchanges, such as the New York Stock Exchange (NYSE) or NASDAQ, where their prices fluctuate based on supply and demand, reflecting investors' expectations of the company's future earnings

. In summary, stocks are securities that represent ownership in a company, offering investors a chance to share in the company's profits and growth, while also carrying risks related to the company's performance and market conditions