Stock is an investment vehicle that allows you to become a partial owner of a publicly traded company. Companies sell stocks on a marketplace called a stock exchange to raise money, and then investors buy or sell those shares based on the company’s potential for growth and other factors. Stocks are usually considered long-term investments, and they can be an excellent way to build wealth over time.

Stocks can make you rich if the company you own does well, but they can also lose value if the company experiences a downturn. While nothing is guaranteed with investing, the average long-term investor sees their stock portfolio grow over time. Some people choose to buy individual stocks, while others own a large portion of the stock market through mutual funds and index funds, which pool many different types of investments together.

The most common kind of stock is known as common stock. This is the kind that most retail investors have access to, and it gives you a chance to share in the profits of successful public companies. The price of a share can be expensive, but you can invest in fractions of shares through some brokerages. If you invest in a company that offers dividends, you may receive regular payments on top of your share price.

A company’s performance can impact its share price, but the overall economy and markets are a bigger driver of long-term stock prices. Generally, when there’s good news about a company or industry, demand for its stock rises, and the share price goes up. However, if the company faces a scandal or experiences poor performance, demand for its stock falls and the share price drops.

It’s important to research your investments before you buy or sell, but the amount of risk you take with each one is up to you. Some people can tolerate a lot of short-term volatility, while others cannot. The level of risk you can manage is a key factor in how much you’ll earn from your investments.

In cooking, stock is a savory liquid that forms the base of many dishes, particularly soups and stews. It’s made by simmering bones, meat and/or vegetables for an extended period of time. The flavor comes from the bone marrow, cartilage and other connective tissues, which are cooked down into gelatin that thickens the liquid. A bouquet garni is often added, consisting of parsley, bay leaves and a sprig of thyme.

In addition to being a popular form of investment, stocks can be used to prepare meals like stews and soups. They’re also a great source of protein, especially if they’re made from meat and fish bones. While it’s not a replacement for protein powder, it is an excellent source of amino acids, which are the building blocks of proteins in plants and animals. Stock is also high in potassium, which helps regulate blood pressure and muscle contractions. It’s low in sodium and fat, which makes it a healthy choice for people with heart disease or diabetes.