What are stocks?
A stock represents partial ownership in a company, offering a claim on its earnings and assets. As the company's value rises or falls, so does the value of its stock.
Stocks are generally bought and sold electronically through stock exchanges, the two primary ones in the United States being the New York Stock Exchange (NYSE) and the National Association of Securities Dealers Automated Quotations (NASDAQ). While some companies sell stock directly to investors, most only sell stock through a brokerage.