Stock

Stock is a type of security that represents partial ownership in a corporation. When you buy stock, you become a shareholder and gain a claim to a portion of the company’s assets, earnings, and—in the case of common stock—potential voting rights at shareholder meetings. Companies issue stocks to raise capital for expansion and operations, and these stocks are bought and sold by investors on organized exchanges like the New York Stock Exchange or Nasdaq. Stocks can also pay dividends and appreciate (or depreciate) in value, allowing investors to profit if the company succeeds and grows.