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- Stocks represent shares of ownership in a company123.
- Companies sell shares (stocks) to investors to raise funds for business expansion1.
- There are two main types of stock: common and preferred4.
- Historically, stocks have outperformed most other investments over the long run4.
- When you buy a stock, you own a piece of that company5.
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 work like this: Companies sell shares in their business, also known as stocks, to investors. Investors buy that stock, which in turn provides the companies money for expanding their business through creating new products, hiring more employees or other business initiatives.www.nerdwallet.com/article/investing/what-are-stoc…Stocks represent shares of ownership in a company, and are listed for sale on a specific exchange. Exchanges track the supply and demand — and directly related, the price — of each stock. They also bring buyers and sellers together and act as a market for the shares of those companies.www.nerdwallet.com/article/investing/stock-market …A stock is a financial instrument that represents ownership in a company or corporation and a proportionate claim on its assets and earnings. Stocks are also called shares or equity. Owning stock means that a shareholder owns a slice of the company equal to the number of shares held as a proportion of the company's total outstanding shares.www.investopedia.com/articles/investing/082614/h…Key Takeaways
- A stock is a form of security that indicates the holder has proportionate ownership in the issuing corporation and is sold predominantly on stock exchanges.
www.investopedia.com/terms/s/stock.aspWhen you buy a stock or a share, you're getting a piece of that company. How much of the company you own depends on the number of shares the company has issued and the number of shares you own. If it's a small, private company, a single share could represent a large part of the company.www.investopedia.com/terms/s/stockmarket.asp- People also ask
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