“Stock/Stocks” is also known as “shares” or “equity.”
A stock is a share in the ownership of a company. It allows the holder to have a claim on the assets and earnings of the company that the stock is from. There are two main types of stock:
Common Stock: This type often gives the owner the ability to vote at shareholders meetings. It also many times allows the owner to receive dividends, a payment from the company to shareholders.
Preferred Stock: These usually do not have voting rights, but they give the owner a larger claim on assets and earnings compared to common shares.