Stocks represent ownership shares in a company. When an individual purchases stocks, they become a shareholder, entitling them to a portion of the company’s assets and earnings. Stocks are typically bought and sold on stock exchanges, and their prices fluctuate based on supply and demand, as well as the company’s performance and broader economic factors.
There are two main types of stocks: common stocks and preferred stocks. Common stock allows shareholders to vote on corporate matters and potentially benefit from dividends and capital gains. Preferred stock generally offers fixed dividends and has priority over common stock in the event of liquidation, but it typically does not confer voting rights.
Investing in stocks is a way for individuals to participate in the financial markets, seek capital appreciation, and diversify their investment portfolios, but it also involves risks, as stock prices can be volatile. Stocks are often considered a key component of long-term investment strategies, as they can provide significant returns over time compared to other asset classes like bonds or cash.
Despite some management risks, tech giant Kakao is anticipating a surprising increase in its stock price this year. Analysts are optimistic about the company's advertising and commerce businesses, which have…