What are stocks?

Loans people make to a government and expect to be repaid
A pool of money from investors that is invested in many ways
Retirement savings accounts that are tax deferred
Shares of ownership in a company that may pay dividends

1 answer

Stocks are best described as shares of ownership in a company that may pay dividends. When you buy stocks, you are purchasing a small part of that company, and as a shareholder, you may receive dividends, which are a portion of the company's profits distributed to shareholders.