What is a stock?

If you're new to investing, one of the first things you'll hear about is stocks. A stock represents a small ownership stake in a company. When you buy a stock, you become a shareholder, meaning you own a tiny piece of that business. People invest in stocks because they hope the company will grow over time. If the company becomes more valuable, the stock price may rise. Some companies also pay dividends, which are payments made to shareholders. While stocks can go up and down in the short term, many investors use them as a way to build wealth over the long term.


FYI: This article is for educational purposes only and should not be considered financial advice. Always do your own research before making investment decisions.

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