Stock

A stock is a security that represents a shareholder’s proportionate ownership in the assets and earnings of the issuing corporation. Stocks are primarily bought and sold on exchanges. In exchange for cash, stockholders obtain a piece of a corporation and a claim to that firm’s assets and earnings.

Corporations issue (sell) stock to raise funds to perform core services. Stocks are bought and sold on stock exchanges and are the cornerstone of nearly every investment portfolio.

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