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A stock is a security that represents a share in a public limited company. In addition to stocks, other important types of securities are bonds (fixed-interest securities), certificates, funds, ETFs and warrants.
The easiest way to explain a stock is to use a fictitious example: Rendite Corp. is a public limited company. The founder of the company holds 100 percent of his company. This means that he still owns all the stocks in Rendite Corp.. However, he now wants to sell a stock of his company. You buy 200 of the 1,000 existing stocks. You now own 20 percent of the company. You are now a stockholder and co-owner of Rendite Corp..
Owning stocks in Rendite Corp. gives you certain rights. Firstly, the right to have a say at the company's annual general meeting. Secondly, the right to participate financially in the company's success.