Stocks, also known as shares or equities, represent ownership in a company. When an individual purchases stock, they buy a fraction of the company, entitling them to a portion of its assets and earnings. Stocks are typically bought and sold on stock exchanges and are a primary way for companies to raise capital to fund operations and growth.
There are two main types of stocks: common and preferred. Common stockholders may vote on corporate matters and are entitled to dividends, which are payments made from the company’s profits. Preferred stockholders typically do not have voting rights but have a higher claim on assets and earnings than common stockholders, often receiving fixed dividends.
Investing in stocks is a common method for individuals and institutions to grow wealth over time, though it comes with risks, including the potential loss of investment based on company performance and market conditions. Stock prices can fluctuate due to various factors, including company performance, investor sentiment, economic conditions, and market trends. Overall, stocks play a crucial role in the economy by facilitating investment and enabling companies to expand.
```html Intel's stock rose by 4.86%, closing at $20.72, outperforming the S&P 500. The company faces significant challenges, including a $19.23 billion loss last year. Intel's market share has shrunk…