Stocks - Page 4

Stocks are financial instruments that represent partial ownership in a company. When an individual purchases stocks, they buy shares, which signify direct ownership in a portion of the company's assets and earnings. Stocks are typically traded on exchanges, where their prices fluctuate based on supply and demand dynamics as well as the company's performance, market conditions, and investor sentiment. Investors buy stocks with the expectation that their value will increase over time, allowing them to sell shares for a profit. Stocks can provide dividends, which are payments made by the company to its shareholders from profits. Overall, stocks are a key component of investment portfolios and play a significant role in the broader economy.