Stocks represent an individual's or institution's stake in a publicly traded entity. These are the investments that will allow you to accumulate wealth. The stockholder is a shareholder who receives dividends in exchange for their investment.
Stocks enable the entity to raise capital from the stock market while also spreading the financial risk. Rather than borrowing money from financial institutions and incurring debt, stock offerings meet capital requirements while increasing brand value. The stock offering will increase market capitalization, which will aid in negotiating terms with financial institutions and financial markets in the future, making it easier to raise funds for expanding, building infrastructure, and developing new product lines.