A stock is a share of ownership in a company.
A financial instrument that represents ownership in a piece of the issuing company is a stock, sometimes referred to as equity. Based on the number of shares they own, shares give their owners a proportionate share of the company's assets and profits. Units of stock are another name for shares.
The trading of stocks on stock exchanges is the basis of many individual investors' portfolios. Trading must adhere to governmental regulations that shield investors from unethical practises.
Shareholders may receive a percentage of the assets and profits of the business.
One shareholder will possess 10% of the company's assets and earnings if the company has 1,000 outstanding shares of stock and that shareholder holds 100 of those shares.
Hence, stocks are a share of ownership in a company.
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