A stock represents ownership in a company. When you buy a share, you own a small piece of that business. Companies issue stocks to raise money, and investors buy them hoping the company grows, making their shares more valuable.

Stocks are traded on exchanges like the NYSE or Nasdaq. Their prices change based on supply and demand, company performance, and economic conditions. Some stocks pay dividends (a portion of profits) to shareholders, while others reinvest profits to grow faster.

As a shareholder, you can benefit if the stock price rises or dividends increase. However, stock values can also fall, so it’s important to research companies and diversify your investments to manage risk.