Stocks, also known as shares or equity, are units of ownership in a company. When an individual purchases stock in a company, they are buying a small portion of the company and becoming a shareholder.

Shareholders are entitled to a portion of the company’s profits, known as dividends, and may have voting rights on important company decisions. The value of a stock can fluctuate based on various factors, such as the company’s financial performance, industry trends, and global events.

Stocks can be bought and sold on stock exchanges, and the price of a stock is determined by supply and demand in the market.