A stock represents a means for companies to raise capital outside of a regular revenue stream. When companies sell shares of stock, they sell a small piece of ownership for interested investors to buy.
Companies start as privately held and are not listed on any stock exchange. Its leaders must decide to start selling shares to the general public through an initial public offering (IPO).
Stocks offer incredible investing potential and can lead to massive profits if done correctly. While admittedly rare, individuals have achieved their financial goals from investing in the stock market.