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A type of security that signifies ownership in a corporation and represents a claim on part of the corporation's assets and earnings.

Business Glossary provided by
Stock, or equity, allows investors to own a portion of a company, with the primary types being common and preferred stock. Common stockholders usually have voting rights and the potential to receive dividends, whereas preferred stockholders have priority in dividend payments but typically no voting rights. Stock markets facilitate the buying and selling of these securities, enabling investors to share in the profits of corporations and potentially realize gains from increases in stock value.
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