What is a Stock?

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What is actually a stock? Stock represents ownership of a company and is created when a company decides to "give away" by selling part ownership of a company. This is done to raise capital and serve as an incentive for a company to increase profits.
A unit of ownership is called a share which fluctuates in value each day.

Many companies decide to go public which means that their shares can be bought or sold on a stock exchange that is open to the public. As the company expands or contracts, the stock's price per share is determined by the market.

Companies have different types of stocks, but for individual investors, the type of stock dealt with most is Common Stock. When a company first goes public, this is called an Initial Public Offering (IPO).

I am also talking here about different types of stocks (common and preferred stocks), classes of stocks and kinds of stocks like growth stocks, dividend stocks, defensive stocks.