What is a stock?

A stock represents a share in the ownership of a company. When individuals purchase stock, they buy a small piece of that company and gain a claim on its assets and earnings. This ownership stake comes with potential benefits such as dividends, which may be paid out from the company's profits, and the ability to participate in shareholder meetings.

Owning stock also means that if the company performs well and increases in value, the stockholder can benefit from capital gains when they sell their shares for a higher price than what they paid. This ties into the fundamental nature of stocks as equity investments that give shareholders insight into the company's performance and place them in a position to share in its financial success.

The other options describe different financial instruments or structures. Bonds are debt securities issued by companies or governments, a government savings account doesn't pertain to equity or ownership in a company, and fixed return investments refer to products that promise a predetermined return, which does not apply to stocks that fluctuate in value based on the company’s performance and market conditions.