What Is a Stock?
The term “stock” refers to an equity investment or a shared ownership of a corporation that signifies a claim on a specific portion of the business’s assets.
There are many different kinds of stocks being offered in the stock market today.
An investor will choose a specific stock to invest in based on his or her budget and investment goals.
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How Stock Investments Work
A corporation issues shares (ownership in the corporation) to investors.
In return, the corporation receives capital for operations, expansion or for other business needs.
If a corporation holds 2 million shares and an investor buys 200 of these shares, the investor claims 0.01% of the corporation and obtains a percentage of the profit as dividends.
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