What does the term stock refer to in a business context?

In a business context, the term "stock" refers to the capital that a company raises through the issuance of shares. When a business sells stock, it allows investors to buy ownership stakes in the company. This capital can then be used for various purposes, such as funding operations, expanding the business, or launching new products. Owning stock typically gives shareholders a claim on the company's assets and earnings, and they may receive dividends as profit distribution.

This understanding of stock as a form of ownership in a business is fundamental to the functioning of financial markets, where companies can access capital to grow and prosper while investors can share in the company's potential success.