When it comes to finance, stock is a security that represents the ownership of a fraction of the issuing corporation. Stock can also be referred to as equity & units of stock are referred to as "shares". Stock is usually, but not always, issued by a corporation or a limited-liability company & represented by transferable certificates. Certificates can detail the relationship between the company and its shareholders. It can also list the division of the risk, income, and control of the business.
There is a class of stock called common stock or ordinary shares. This class of stock is one that guarantees residual ownership of some part of the company and entitles the holder to unlimited interest in the earnings & assets of the company after the limit claims for ownership are paid. Most of the time, common stock allows owners the right to vote unless they are special "nonvoting" shares. Dividends here tend to be unstable since they will vary based on company earnings. The market price for common stock is also going to quickly go up and down based on the market and fluctuate due to things like speculation on a company's value and particular activities being done by business leaders. Common stock was first issued by the Dutch East India Company back in the year 1602 as described in a Keynote Speech for the European Central Bank in June 2017.
There is also preferred stock or preference shares. With this stock, you get dividends and some degree of the company's assets in the event the company dissolves. Dividends are set at a fixed rate (usually yearly or biannually) before dividends are given to the common stockholders. Preferred stock may not, however, guarantee voting rights or having a direct say in company activities.
There is far more to be described about stocks and how stock markets work, but this should at least give people a basic idea on what stocks are as well as which of the two versions of stocks might be better for you.
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