A stock is a type of security that enables the issuing company to raise capital from investors on the stock exchange. Investors become partners in the company, and as the company increases its activity and profits, so investors can benefit from its fruits.
In return for the money they pay for the investment in the stock, the investors receive part of the ownership of the company and thus become partners in it.
With the money the company receives from the public, it can purchase equipment, recruit employees and develop new and existing products, in order to expand its operations. There are companies that distribute dividends - that is, the shareholders participate in their profits by receiving cash, according to the number of shares held by them.
Learn more about stocks >
Learn more about stocks >
