Stocks, also known as shares or equities, represent ownership in a company. When you buy a stock, you’re purchasing a small piece of that company—called a share. As a shareholder, you benefit when the company does well, and you bear the risk if it doesn’t.
Long-term investment in strong companies
Buying undervalued stocks (Warren Buffett style)
Investing in companies with high growth potential
Focusing on stocks with reliable dividend payouts
Companies issue stocks to raise capital for growth, expansion, or paying off debt. Investors buy these stocks hoping their value will increase or that the company will pay dividends—a portion of profits shared with shareholders.
While stocks can offer high returns, they come with risks:
