Stocks (Known as equity ) is the Financial Instrument that represents fractional ownership of a company,

Normally a unit of stocks is also called a Share of a specific company, and each shareholder has grand ownership of the company as well.

or example, Mr. David owned a company and we imagine the company is a Cake then Mr. Herry bought a piece of Cake from the whole cake then we can say From Mr. David’s company Mr. Herry bought a Share and Mr. Herry is the owner of that company as well even he bought a piece of it and it’s called a share.

How do Stocks / Shares work?

When you purchased a share of a company, it means you are buying a small piece of that company and becoming a shareholder. As long the company grows you become more profitable, the value of your share may increase, and allowing you to sell it for a profit. same the opposite, if the company does not perform well, the value of your share may decrease.