Stock

Meaning :

A stock is a share that represents ownership in a company. When you buy a stock, you own a small part of that business and can earn money through price increases  or dividends.

Example : 

For instance, buying 10 shares of Reliance Industries gives you partial  ownership in the company.

How to Understand : 

Think of a stock as a slice of a company.

If the company grows and does well, the value of your stock goes up.

If the company does poorly, the value of your stock may go down.

Importance :

Stocks help you build long-term wealth over time.

They often offer higher returns compared to savings accounts.

Owning stocks means you have a share in companies.

Stocks can help you achieve your financial goals by supporting capital growth.

Investors may earn dividends, which is extra money from the company.