Homonym: Stock (Inventory)
Stock represents ownership in a company. When you buy stock, you purchase a small piece of that company, which means you can benefit from its success. Companies issue stock to raise money for growth and operations. Investors buy and sell stocks on exchanges, hoping to make a profit as the company's value increases.
There are two main types of stock: common stock and preferred stock. Common stock gives shareholders voting rights and the potential for dividends, while preferred stock typically offers fixed dividends but no voting rights. Investing in stocks can be a way to build wealth over time, but it also comes with risks.