Stocks

AI responses may include mistakes. For financial advice, consult a professional. Learn more

A stock, also known as equity, represents fractional ownership in a corporation. When you buy a share of a company like Apple or Disney, you are becoming a "shareholder." As a part-owner, you are entitled to a portion of the company’s profits—often paid out as —and you may benefit if the company’s value increases over time. For the company, issuing stock is a way to raise money to fund new projects, hire employees, and grow. How Wealth is Created stocks

Investors generally make money in the stock market through two primary avenues: AI responses may include mistakes

This is the "buy low, sell high" principle. If you buy a stock at $50 and its price rises to $75 because the company is performing well, you have gained $25 in value. When you buy a share of a company