Stock

Meaning :

A stock refers to a share that signifies ownership in a company. When you purchase a stock, you acquire a small part of that business and have the potential to

earn returns through price appreciation or dividends.

Example : 

For example, buying 10 shares of Reliance Industries provides you with partial  ownership in the company.

How to Understand : 

Consider a stock as a slice of a company that you own.

If the company expands and performs well, the value of your stock increases.

Conversely, if the company performs poorly, the value of your stock may decrease.

Importance :

Stocks are a valuable tool for building long-term wealth.

They typically provide higher returns than traditional savings accounts.

Owning stocks means you have a stake in various companies.

Stocks support capital growth and help you achieve your financial objectives.

Investors may also receive dividends, which serve as additional income from the company.