Stocks are securities that represent an ownership share in a company. When you buy or receive shares in a company, you become part owner of that company. This is known as having equity in that company. The more shares you have in relation to the total number of shares issued by the company, the more of the company you own.
For e.g. if a company issued 10,000 shares and you own 100 shares, then you are 1.0% owner. People who own shares in a company are referred to collectively as “shareholders” or “stockholders”
