Stocks, also known as shares or equities, are a type of financial asset that represents a portion of ownership in a company, specifically a joint-stock company. When you buy a stock, you become a shareholder, participating in the stock’s performance and receiving a stake in the company’s profits in the form of dividends. The share price is subject to fluctuations and is influenced both by the company’s performance or profitability and by general market sentiment.
How do Stocks work / What is an IPO?
In an Initial Public Offering (IPO), securities are issued for the first time. Companies seeking capital sell their own shares to investors offering capital. The reasons for a company to offer stocks are varied, including raising capital for growth and valuing the company.
Stocks can then be traded via stock exchanges, online brokers, financial advisors, or banks, among others.
owadays, stock trading platforms, also called online brokers, are gaining more and more popularity. This is mainly due to the fact that trading platforms such as the BISON app are easily accessible, often associated with low costs, and user-friendly.
Types of stocks
There are two main types of stocks:
