Stock

Stock is a foundational security representing ownership in a corporation and a proportional claim on its assets and earnings. When an investor buys stock, they become a shareholder, acquiring a fractional stake in the company. This ownership typically comes with certain rights, such as the ability to vote on company matters (common stock) and the potential to receive dividends, which are distributions of the company's profits. Companies issue stock primarily to raise capital for growth, expansion, or operations, turning private ownership into publicly tradable units on stock exchanges.