👉 Stocks, or equities, represent ownership shares in publicly traded companies, essentially allowing investors to own a small piece of that company. When you buy a stock, you're purchasing a fraction of the company's assets and future earnings, which in turn affects the stock's price. Stock markets, like the New York Stock Exchange (NYSE) or NASDAQ, are platforms where these shares are bought and sold, with prices fluctuating based on supply and demand, company performance, economic indicators, and investor sentiment. Investors use stocks for various reasons, including potential capital appreciation (increasing value over time), dividends (regular payments made by companies to shareholders), and income generation. Stocks can be categorized into different types, such as large-cap (large market capitalization), mid-cap (medium market cap), small-cap (small market cap), and international stocks, each with varying levels of risk and potential return.
