Stocks represent ownership in a company and are a way for individuals to invest in businesses. When you buy a stock, you purchase a share of that company, which can increase or decrease in value based on the company's performance and market conditions. Investors often buy stocks to earn dividends or to sell them at a higher price in the future. The stock market is where these transactions occur, allowing investors to buy and sell shares of publicly traded companies. Major stock exchanges, such as the New York Stock Exchange and NASDAQ, facilitate this trading, providing a platform for price discovery and liquidity in the market.