<human>:  Could you explain how stocks work?
<bot>: Stocks are shares in the ownership of a publicly traded company. When a company decides to go public, it will issue a certain number of stocks, known as shares, for the public to purchase. When an investor buys a stock, they become a part-owner of the company and can benefit from the profits that the company makes. When the stock market goes up, the value of the stock increases and the owner can potentially sell their shares for a profit. Conversely, when the stock market goes down, the value of the stock decreases and the stockholder can potentially take a loss.