What are stocks?

Stocks, also known as shares or equities, represent ownership in a company. When you buy a stock, you purchase a small part of that company and may receive a portion of its profits in the form of dividends. Stocks are traded on stock exchanges and their prices fluctuate based on supply, demand, and overall market conditions. Investing in stocks can be a way to build wealth over time, but it also comes with risks, including the potential loss of your investment.