Stocks (also known as equity) represent ownership in a company. When you purchase a stock, you become a shareholder and own a fraction of that business. Stocks are bought and sold on stock exchanges like the BSE and NSE in India.

The value of a stock is influenced by the company’s performance and other factors like market demand, sector news, global events, and economic trends. Investors buy low and aim to sell high, and may also earn dividends—a share of the company’s profits.