What are stocks?

Economics Stock Market Questions



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What are stocks?

Stocks, also known as shares or equities, represent ownership in a company. They are units of ownership that individuals or entities can purchase from a company in order to become shareholders. By owning stocks, investors have a claim on the company's assets and earnings. Stocks are typically bought and sold on stock exchanges, and their prices can fluctuate based on supply and demand dynamics, as well as various market and economic factors.