What does owning a stock represent?

Owning a stock represents a share of ownership in a company. When you purchase stocks, you are essentially buying a small fraction of that company, which confers certain rights to you, such as voting on corporate matters and receiving dividends if the company distributes them. This ownership stake means that stockholders can benefit from the company's success, as the value of the stock may increase along with the company's growth and profitability. Stocks are a key component of equity markets and reflect an investor's claim on part of the company's assets and earnings, distinguishing them from other types of investments like bonds or fixed income securities, which do not offer ownership stakes.