Stocks

Stocks are a type of security that gives shareholders an ownership interest in a company. Stocks also are called as “equities”. It is mainly bought and sold on exchanges. Stocks are traded to make money from daily changes in prices. Stocks can be traded in the short-term and long-term. Share prices are determined by the supply and demand for the orders of buyers and sellers. For liquidity and capital raising purposes, listing on exchanges benefits companies. Trading individual equities includes the risk of substantial losses in addition to the potential for rapid returns for those who time the market correctly. Wealth of a single firm may increase faster than the market, but it may also decline just as quickly.