Stock (also known as capital stock) is a form of security that indicates the ownership of a fraction of a corporation. A single share of stock represents the corporation's fractional ownership in proportion to the total number of shares. Therefore, a corporation can raise capital and funds by issuing stock certificates in the stock market, and those who own at least one share of stock are named as shareholders.
Shareholders reap the benefits of a business' success. These rewards come in the form of increased stock price or as financial profits distributed as dividends.
Conversely, it is also a risk when the share price invariably drops, causing shareholders to suffer declines in their portfolios' values.
After all, investing in the stock market has its advantages over cash saving in the long-term as it provides an opportunity for greater returns on money over time.