What is Stocks?
A stock, also known as a share or equity, represents ownership in a company. There are two main types of
stocks: common stock and preferred stock. Common stock is the most common type of stock and gives
shareholders the right to vote at shareholder meetings and receive dividends. Preferred stock generally
does not come with voting rights, but it often has a higher dividend rate than common stock and may have
priority over common stock in the event that the company goes bankrupt and is liquidated.
Stocks can be bought and sold on stock exchanges, such as the New York Stock Exchange (NYSE) or the
The price of a stock is determined by
supply and demand in the market, with the price rising as demand for the stock increases and falling as
There are many factors that can affect the price of a stock, including the company's financial
performance, the overall state of the economy, and changes in industry conditions.