Before I explain my understanding, I will first discuss the topic of “clarifying concepts”.
Every noun, the so-called concept, refers to something or phenomenon. Because the focus of understanding the term is different, it causes everyone's understanding of the same noun to be more or less different. This is unavoidable. Everyone can only describe the thing itself as close as possible through words, but the words described can never replace the things themselves.
The stock that I understand has the following characteristics:
1. It is a kind of securities (that is, when you own this securities, you can find the corresponding price if you want to calculate its value)
2. It represents a right (this includes: the company's voting rights and the right to obtain dividends from the company's profits. If you own a stock, you will have one or both of these rights.)
3. It represents an obligation (the obligation to develop with the company and assume the risks that the company may face)
Think about it, how do you or the people around you think about the concept of "stock".
When someone says something like "stock is the kind of buy, wait until the price rises and sells, earn profits", what kind of risk does this imply?
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