Stocks, also known as shares or equities, represent a unit of ownership in a company. When a company sells stocks, it is selling a small piece of ownership in the company to investors. Investors who buy stocks become part-owners of the company and are entitled to a portion of the company’s profits and assets. The value of a stock is determined by supply and demand in the market, and can fluctuate based on a variety of factors, such as the company’s performance and overall economic conditions. Stocks are traded on stock exchanges and other financial markets.
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