Trading stocks are units of ownership that represent a part of a particular company. When you buy a stock, you buy a part of that company and become a partial owner of it. Stocks are traded on financial markets such as stock exchanges, where investors can buy and sell shares based on their market value, which is affected by many factors such as the company’s performance, economic conditions, and global events.

There are two main types of stocks:

1. Common stocks: These give shareholders voting rights at company meetings and the right to receive dividends, but the dividends are not guaranteed.

2. Preferred stocks: These give their owners the right to receive fixed dividends before the dividends are distributed to common shareholders, but they usually do not grant voting rights.

Stock trading can be a way to make a profit, but it does have risks, as the value of shares can fluctuate. It is important for investors to have a clear strategy and a good understanding of the market before starting to trade.