Stock / Share
Represents ownership interest in a company, traded on exchanges.
Detailed Description
Stock / Share
What is a stock?
A stock, or share, represents fractional ownership in a company, entitling the owner to a portion of the company's assets and earnings.
What are the main types of stocks?
The two main types of stocks are common stock, which allows voting rights, and preferred stock, which typically does not allow voting but has a higher claim on assets.
How do stocks generate profit for investors?
Investors can profit from stocks by buying shares at a lower price and selling them at a higher price, as well as receiving dividends.
What are some risks associated with investing in stocks?
Risks include market volatility, company-specific risks, and broader economic factors that can affect stock performance.
What is the role of stock exchanges?
Stock exchanges are regulated marketplaces where stocks are listed and traded, facilitating buying and selling while ensuring transparency.