Stocks represent ownership in a company. When you buy a stock, you are buying a small piece of that company.
There are two main types of stocks: common stocks and preferred stocks. Common stocks usually come with voting rights, while preferred stocks have a higher claim on assets and earnings.
Investing in stocks can potentially offer high returns compared to other investment options. Stocks also provide the opportunity for capital appreciation and passive income through dividends.
Stock investing comes with risks such as market volatility, company-specific risks, and the potential of losing your invested capital. It's crucial to research and diversify your investments to minimize risks.
To start investing in stocks, you will need to open a brokerage account, research companies, and decide how much you want to invest. Consider starting with a small amount and gradually increasing your investment as you gain more knowledge and experience.