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- Stocks represent ownership equity in a company and give shareholders voting rights as well as a residual claim on corporate earnings in the form of capital gains and dividends1. Here's a simplified version of how stocks work2:
- You tell your broker (or input electronically) what stock you want to buy and how many shares you want.
- Your broker relays your order to the exchange.
- A market maker sells you shares at the current market price.
- The shares are then delivered to your account.
Learn more:✕This summary was generated using AI based on multiple online sources. To view the original source information, use the "Learn more" links.Stocks represent ownership equity in the firm and give shareholders voting rights as well as a residual claim on corporate earnings in the form of capital gains and dividends. Individual and institutional investors come together on stock exchanges to buy and sell shares in a public venue.www.investopedia.com/articles/investing/082614/h…When you buy a stock, here's the simplified version of how it works: You tell your broker (or input electronically) what stock you want to buy and how many shares you want. Your broker relays your order to the exchange. A market maker sells you shares at the current market price. The shares are then delivered to your account.www.fool.com/investing/stock-market/The stock market works through a network of exchanges — you may have heard of the New York Stock Exchange or the Nasdaq. Companies list shares of their stock on an exchange through a process called an initial public offering, or IPO. Investors purchase those shares, which allows the company to raise money to grow its business.www.nerdwallet.com/article/investing/what-is-the-st…Simply put, stocks are a way to build wealth. They are an investment that means you own a share in the company that issued the stock. Stocks are how ordinary people invest in some of the most successful companies in the world. For companies, stocks are a way to raise money to fund growth, products and other initiatives.
www.nerdwallet.com/article/investing/what-are-stoc…Stocks are bought and sold on a stock exchange such as the New York Stock Exchange (NYSE) and in the private market, where individual and institutional investors can negotiate purchases and sales of company ownership. The “stock market” includes stock exchanges and marketplaces where other investments are traded.www.edwardjones.com/us-en/investment-services/i… - People also ask
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