A stock is a security that represents a share in the assets of a joint-stock company. Its owner, called a shareholder, thus becomes a partial firm owner. Three fundamental rights derive from this property: the right to participate in the profits of the company in the form of dividends, the right to participate in the management of the company through a vote at the general meeting, and the right to a share in the liquidation balance in the event of the firm's demise. The weight of the vote, as well as the amount of the profit share, usually depends on the number of shares held.
For a company, issuing shares is a key way to raise funds for its development, investment, or innovation without debt. For investors, buying shares is an opportunity to appreciate capital, either through a rise in the market price of a stock or through regularly paid dividends. Stocks are traded on stock exchanges, where their price fluctuates based on supply, demand, and the firm's economic condition, which entails the risk of loss.