Stock

A stock is a fractional ownership stake in a company. When you buy a stock, you own a piece of that business proportional to the number of shares you hold relative to all shares outstanding. Companies issue stocks to raise capital, and investors buy them hoping the company will grow in value or pay dividendsTermDividend×توزيعات الأرباحA payment a company makes to its shareholders from profits, usually in cash or additional shares.Open the term from its profits.

Stock ownership is how most people build wealth beyond their salary. The return comes in two forms: capital appreciation, when the share price rises, and dividends, when the company distributes profits to shareholders. In most Arab markets, individuals pay no capital gainsTermCapital gains×أرباح رأسماليةThe profit you make when you sell an asset for more than you paid for it.Open the term tax on stock sales, which changes the calculation between holding for the long term and trading more frequently. This tax advantage means the full gain stays with you, unlike in markets where capital gains are taxed. The trade-off is that stocks are volatileTermVolatility×التقلّبThe speed and size of price swings in an asset, measured as how far returns stray from their average.Open the term: their price moves daily based on company performance, market sentiment, and economic conditions. A stock can lose half its value in months or double it in years. This volatility is why stocks suit money you will not need for several years and why diversificationTermDiversification×التنويع الاستثماريSpreading money across different investments instead of concentrating it in one, so the entire portfolio does not collapse if one investment fails.Open the term across multiple stocks or funds reduces the risk any single company poses to your portfolio.

• Stock prices move constantly during market hours; the price you see is not the price you will pay if you trade right now.
• Ownership of a stock does not guarantee dividends; a company can choose to reinvest profits rather than distribute them.
• Stocks are riskier than bonds or savings accounts but historically deliver higher returns over long periods.
• Buying individual stocks requires research into the company's finances and prospects; funds and indicesTermStock index×المؤشرA measure of how a group of stocks is performing, calculated from the prices of companies selected to represent a market.Open the term offer instant diversification if you prefer not to pick companies yourself.