Stock, also known as bone broth, is a cooking liquid that forms the basis for many soups, stews and sauces. It is made by simmering animal bones and meat or fish for extended periods, sometimes with mirepoix and other aromatics added for flavor. The simmering breaks down the connective tissue of the bones, releasing gelatin that thickens the liquid. The stock may be flavored with herbs and spices, according to local tradition or availability. Some common types of stock include ham, chicken and veal. Myeolchi yuksu is a Korean stock made from boiling dried anchovies and kelp. Glace de viande is a French stock that contains a high proportion of meat fat and can be made from beef, veal or lamb. In some recipes, the stock is reduced to make a glaze for dishes.

A stock can be used to make bouillon or gravy as well, and can be served as an entree with vegetables and rice or noodles. In cooking, stocks are usually seasoned with salt, pepper and other spices, although the seasoning is often adjusted depending on the dish or region of the country. During preparation, the bones are often boiled and roasted for extra flavor before the stock is simmered. The stock is usually left to simmer for long periods to extract maximum flavor, although there are methods to speed up the process.

The value of a stock, like other investments, fluctuates. Generally, stocks offer the potential for strong returns over the long term if invested wisely. However, it’s possible to lose money on a stock if it declines in value or even go bankrupt. The price of a stock is determined by the market through a process that distributes control of publicly traded companies among millions of investors who buy and sell shares, or fractional ownership, in the company. Stocks can be bought and sold on a marketplace called a “stock market” that includes a variety of exchanges and private markets where buyers and sellers negotiate prices.

Individual stocks can be grouped by their size, as measured by their market capitalization, into large-cap, mid-cap and small-cap companies. Shares in very small companies are considered microcap stocks and are more speculative. In addition, they typically don’t pay dividends. A company’s performance can impact its share price for a variety of reasons, including the success or failure of new products, bad news and global events that can affect demand for goods and services. Historically, markets have shown seasonality, with some sectors thriving or suffering at certain times of the year. This can impact investor behavior and influence how much risk an investor is willing to take, which can lead to booms and busts in the market.