What Is Stock? - E-PersonalFinance

What Is Stock?

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Stock is a security, issued in the form of shares, that represents ownership in a corporation. Companies issue stock to obtain funds to build their business. Since the average company has millions of shares outstanding (in the hands of the public), each share represents only a tiny interest in the company. Stock prices constantly change as investors bid the stock up or down based on many factors, but most importantly the company's ability to generate profits.

 
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