What "stock" means in finance

A stock represents a unit of ownership in a publicly traded company. When a company decides to issue stocks, it is essentially dividing its ownership into multiple parts. Investors can buy these stocks on stock exchanges and become partial owners of the company. The price of the stock fluctuates based on supply and demand, as well as the financial performance of the company. Stocks may provide dividends to shareholders, which is a portion of the company's profits that is distributed to its owners. Investors can buy and sell stocks in the stock market to make a profit.