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A stock, often called a share or equity, denotes a company's ownership. A business may issue shares of stock, which are then sold to investors, in order to raise money. These investors turn into shareholders and gain the ability to vote at shareholder meetings as well as a share of the company's income, known as dividends.
Stocks can be traded over the counter or on stock exchanges like the New York Stock Exchange and the Nasdaq. A number of variables, including a company's financial performance, the state of the economy, trends in the industry, and investor mood, can affect a stock's price. Using brokers or internet trading platforms, investors can purchase and sell stocks.
Stocks come in a variety of forms, such as ordinary and preferred stock. Investors who own common stock have the opportunity to vote as well as the chance for capital growth and dividends. Although it normally does not have voting privileges, the preferred stock gets priority over common stock in the event of a liquidation and pays a fixed dividend.
Stock investing can be a means to gradually increase wealth, but there are hazards involved. There is no assurance that an investor will earn because stock prices can be unpredictable. To limit risk, it's critical to do research and diversify investments.
