Some portion of the company sold to public is called stock. If a company has 200,000 stocks outstanding means the company has been divided into 200,000 units and different people own some units. These units are called stocks. When you purchase stocks, or equities, you become a partial owner of the business. This entitles you to vote at the shareholders' meeting and allows you to receive any profits that the company allocates to its owners. These profits are referred as dividends.
Stocks give highest return by its appreciation value and dividends. Off course it involves highest risk. Many companies don't pay dividends and there is no obligation for the companies to pay dividends. Hence only way to get return is appreciation (Increase in price of stock over time) value of stock which may not happen and you may lose your money if stock price goes low or company goes bankrupt(The company is closed or financially ruined
Stocks give highest return by its appreciation value and dividends. Off course it involves highest risk. Many companies don't pay dividends and there is no obligation for the companies to pay dividends. Hence only way to get return is appreciation (Increase in price of stock over time) value of stock which may not happen and you may lose your money if stock price goes low or company goes bankrupt(The company is closed or financially ruined
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