What exactly is a stock?

Stocks are how ordinary people invest in some of the most successful companies in the world.

For companies, stocks are a way to raise money to fund growth, products, and other initiatives. In return, investors who purchase stocks at their IPO (initial public offering) own shares of that company.

To help pay for the company's expenses, a portion of future profits gets set aside in a fund called dividends.

These earnings are distributed back to shareholders to reap the benefits of owning a part of a successful business.