Stock

A type of security that represents ownership in a corporation and signifies a claim on part of the corporation's assets and earnings.

A stock, also known as a share or equity, represents ownership in a publicly traded company. When individuals or entities purchase shares of a company's stock, they become shareholders and have a proportional claim to the company's assets and earnings. Stocks are bought and sold on stock exchanges or other trading platforms. Share prices fluctuate based on various factors such as market demand, company performance, economic conditions, and investor sentiment. Investors may earn profits through capital appreciation (selling the stock at a higher price than the purchase price) or through dividend payments distributed by the company to its shareholders. Stocks are classified into different categories based on their market capitalization (total value of outstanding shares) such as large-cap, mid-cap, or small-cap stocks. They can also be categorized based on sectors (e.g., technology, healthcare, finance) or investment styles (e.g., growth stocks, value stocks).