Stocks are very important if you want to understand the financial markets. But first, you need to know the difference between the English terms Shares and Stock.

The word Stock is a general term that is broader and used to describe a part of ownership in a company, from one or more units. Shares, on the other hand, are more specific and usually refer to ownership in a particular company. When a company issues shares, it is selling a part of itself to investors. These investors then become shareholders and have the right to receive a share of the company's profits and assets.

Why do companies need to issue shares? It's simple. They need capital for various purposes, such as paying off debt, launching new products, expanding into new markets, or building additional facilities.

From an investor's perspective, why buy shares? There are several reasons. First, if the share price increases, you can sell for a profit. Second, some companies pay dividends to shareholders. Third, you have voting rights to influence certain decisions of the company.

Regarding types of shares, there are two main categories. The first is Common Stock, which grants voting rights and may receive dividends. The second is Preferred Stock, which has higher priority in terms of dividends, often pays a fixed dividend, and is more secure.

If classified by growth characteristics, shares are divided into two types: Growth Stocks of companies expected to grow faster than the market in general. Investors choose these because they anticipate business expansion and increased market share. And Value Stocks of companies that are fully grown and stable, with undervalued prices, high security, and continuous dividends. The risks and volatility of value stocks are lower compared to growth stocks.