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27 Oct 2021

Introduction

A stock (also known as equity) is a financial instrument that represents the ownership of a portion of a company's shares. This gives stockholders a share of the company’s resources and earnings based on the number of shares they own. The subdivisions of stock are referred to as “shares.” Stocks are a staple of many economic agents’ portfolios, and they’re typically bought and sold on stock markets, though private trades are allowed as well. These transactions must adhere to federal regulations designed to protect investors from misleading practices. Most other long-term investments have consistently underperformed them.

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