what is stock investing

📈 **Stock investing** is the process of buying shares (also called stocks or equities) in a company with the goal of earning a return on your money over time.

Here’s how it works, broken down simply:

### 🏢 What is a Stock?
– A **stock** represents **ownership in a company**.
– When you buy a stock, you become a **shareholder**, meaning you own a small piece of that company.
– Companies issue stocks to raise money for growth, operations, or new projects.

### 💰 How Do You Earn from Stocks?
There are two main ways:
– **Capital Gains**: If the stock price goes up and you sell it at a higher price than you paid.
– **Dividends**: Some companies share a portion of their profits with shareholders regularly.

### 🧠 Why Do People Invest in Stocks?
– To **grow their wealth** over time.
– To **beat inflation** (since money in savings loses value over time).
– To **earn passive income** through dividends.

### ⚖️ Types of Stocks
– **Common Stock**: Most investors buy this. It gives voting rights and potential dividends.
– **Preferred Stock**: Usually no voting rights, but fixed dividends and priority in payouts.

### 🛠️ How to Start Investing
– Open a **Demat and trading account** with a broker.
– Research companies or invest through **mutual funds** or **ETFs**.
– Start small, stay consistent, and think long-term.

Stock investing is like planting a tree—you don’t expect fruit the next day, but with time and care, it can grow into something valuable.