Buying ownership in companies with the expectation of profit is known as what?

Buying ownership in companies with the expectation of profit is referred to as investing in shares. When an individual invests in shares, they are purchasing a portion of ownership in a company, which may yield profits through capital gains as the company’s value increases or dividends if the company distributes profits to its shareholders. This form of investment allows investors to participate in the company's growth and financial success.

The other options describe different forms of investing. Investing in real estate pertains to purchasing property for rental income or capital appreciation, while investing in commodities involves trading physical goods like gold, oil, or agricultural products. Investing in mutual funds involves pooling money with other investors to buy a diversified portfolio of stocks, bonds, or other securities, managed by professionals. Each of these alternatives has distinct characteristics and risk profiles, differing significantly from the direct ownership aspect of investing in shares.