Stocks are securities that represent ownership shares in a corporation. When an individual buys stocks, they are essentially purchasing a small portion of the company, entitling them to a share of its assets and earnings. Stocks are typically traded on stock exchanges, where the price of a share fluctuates based on supply and demand, as well as the company’s performance and broader market conditions.
There are two main types of stocks: common and preferred. Common stockholders have voting rights in company decisions and may receive dividends, which are payments made to shareholders out of the company’s profits. Preferred stockholders usually do not have voting rights but have a higher claim on assets and earnings, often receiving fixed dividends.
Investing in stocks can offer the potential for capital appreciation, meaning the value of the shares can increase over time, but it also comes with risks, including the potential for loss if the company’s performance declines. Stocks are a fundamental component of many investment portfolios, and they play a crucial role in the functioning of capital markets.
Sekisui Chemical's stock surged 15.7% with plans for mass-producing perovskite solar cells. The stock hit an all-time high of 2,840 yen but faces potential volatility. Over five years, the stock…