What are stocks and how do they work?

Stocks are some of the best ways to grow your income. It is simply the easiest way to own a piece of a company. A stock is a monetary investment in a company that grants a shareholder certain ownership rights. Stocks, or shares of a company, represent ownership equity in the firm, which give shareholders voting rights as well as a residual claim on corporate earnings in the form of capital gains and dividends. Companies sell shares in their business to raise money. They then use that money for various initiatives: A company might use money raised from a stock offering to fund new products or product lines, to invest in growth, to expand their operations or to pay off debt. Stocks are how people invest in some of the most successful companies in the world.