A stock is a security that represents a share in the equity capital of a corporation. The holder of a stock—the shareholder—thereby acquires co-ownership rights in the company, which, depending on the type of stock, may include voting rights at the annual general meeting, dividend entitlements, and subscription rights in the event of capital increases.
Stock prices are traded on exchanges and fluctuate depending on the company’s performance, market conditions, industry trends, and overall economic expectations. For investors, stocks offer the opportunity to participate in the value growth of a company. At the same time, they are subject to price risks that can extend to a total loss.
In the context of asset management, stocks are among the most important asset classes and play a central role in long-term capital formation, diversification, and portfolio management.
