Buying shares in companies, also known as investing in stocks, involves acquiring ownership in a publicly traded company. When you purchase a share of stock, you become a partial owner of that company and are entitled to a portion of its profits through dividends and potential capital gains if the stock price increases.
Investing in stocks can offer several benefits, including the potential for long-term growth, dividends providing passive income, and the ability to diversify your portfolio and spread risk. Historically, stocks have outperformed other investment options such as bonds or cash over extended periods.