At its simplest, a stock represents a slice of a company’s ownership. Buying a share ties an investor’s fortunes to the business—its profits, prospects, and reputation in the market.

Stocks trade on exchanges, where prices adjust constantly as buyers and sellers meet. Over time, returns come from two sources: dividends and changes in the share price. Growth companies often reinvest earnings instead of paying dividends, while mature firms may distribute a portion regularly.

Valuation depends on earnings, cash flow, and expectations about the future. News, industry trends, and broader economic conditions all influence prices, sometimes more than the latest financial results.

What investors watch

• Earnings and revenue growth
• Dividend policy and yield
• Industry position and competition
• Market sentiment and macro factors