Investing · 4 min read
What Are Stocks?
A stock is a fractional ownership of a public company. When the company grows, so can your share value; you may also earn dividends.
Why it matters
Equities have historically outpaced inflation over long periods.
Advantages
- Ownership in real businesses
- Long-term wealth creation
- Liquidity on exchanges
Risks
- Prices swing daily
- Individual companies can fail
- Short-term losses are common
Real-world example
Buying one share of a growing company at ₹500 that becomes ₹1500 in 5 years is a 24% CAGR — but the path is rarely a straight line.
Key takeaways
- Think in years, not days
- Diversify across companies and sectors
- Understand what you own
Quick quiz
1. Owning a stock means you own: