The apple, the stop sign and Bob are all individuals or particular things. When we say that the apple is red or that Bob has two arms, we are predicating something of those individuals. And when the same thing can be predicated of more than one individual, then that thing (say, redness or the number two) is termed a universal. A universal is just a general characteristic that those individuals have in common.
Now the status of individuals seems straightforward. We say that there is an apple there - it exists and we can see it and also eat it. But the status of universals seems less obvious. Is redness something real? If so, how does it happen to be in many places at once, in both the apple and the stop sign? And also, the number two seems very abstract, not a physical kind of thing that can exist like the apple and Bob do.
In philosophy, this is called the problem of universals. Plato was the first to discuss the issue in depth and proposed that universals do exist, but they exist in a higher realm of the Forms. So there is an ideal or perfect form for redness, a form for the number two, and a form for every other universal. The (imperfect) individual things that we can see around us are said to participate in those perfect forms. This view is called Platonic realism.
Aristotle (who was Plato's student) strongly disagreed with Plato on this issue. In his view, universals were indeed real, but they were not separable from the individuals that they were found in. That is, there is no redness independent of particular things that are red. This view is called moderate or immanent realism - the universals are immanent within the individuals.
A third view, nominalism, denies that universals are real at all. There are only the names we use and there is no universal quality that they have in common.
My own view is that Aristotle's immanent realism best captures what we implicitly mean when we assert things about individuals. The characteristics that the individuals have in common are not merely naming conventions or the creations of humans. Instead they are necessary for the individuals to be observable in any form at all. Granting that, there also seems to be no good reason to posit a non-natural realm for universals to reside in. They are simply features or aspects of the natural world that we experience, albeit at a more abstract level that requires human intelligence to be able to identify and reflect on them.
The image above shows part of the School of Athens fresco by the Italian Renaissance artist Raphael. It depicts Plato pointing towards the heavens where he supposed the ideal forms to be. It also depicts Aristotle gesturing downwards to the here-and-now world that he held universals were a part of.
