Written by Stocks represent ownership in a company. When you buy a share of stock, you own a small portion of that company. As the company grows and becomes more profitable, the value of your stock may increase. Additionally, many stocks pay dividends, which are regular payments to shareholders. Stock prices can fluctuate based on a variety of factors, including the company’s performance, market conditions, and investor sentiment. Stocks are generally considered higher-risk investments compared to bonds, but they offer the potential for higher returns over the long term.
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