Stocks

A financial stock is a security that represents a small portion of a company's capital. When you buy a stock, you become, to some extent, an owner of the company and have the right to participate both in its profits (for example, by receiving dividends) and, in some cases, in corporate decisions through voting in shareholder meetings.

Practical Examples

• Apple or Google: If you buy shares of a large company like Apple or Google, you become a small owner. If the company does well and makes a profit, the value of the shares could rise, allowing you to make a profit by selling them in the future.

• Small companies: Lesser-known companies also issue stock. Investing in these can be risky but, if successful, the returns could be high.

Link with the Financial Market and Investments Stock Exchange:

Shares are bought and sold on stock exchanges, financial markets where supply and demand determine the price. These prices fluctuate based on factors such as company performance, economic conditions and investor expectations.

Investment: Buying shares is a form of investment.

Investors are banking on the fact that, over time, the value of companies grows, causing the value of shares to increase. However, it is important to remember that this type of investment involves risks: if the company does badly, the value of the shares can decrease.

In summary, financial stocks offer a way to invest in the success of companies, participating in profits and any losses, through the stock market.