Buying a stock share represents a fractional ownership in a publicly traded company. It signifies an investment in the company’s future and entitles the shareholder to a portion of its profits, known as dividends, and voting rights on company decisions.
Investing in stocks can offer several potential benefits. It can provide a hedge against inflation, as stock prices tend to rise over time. Stocks also have the potential to generate higher returns than other investments, such as bonds or savings accounts, although they also carry more risk.