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Basics

Stock (share)

Beginner

A stock is a tradable share of a company's equity. It is first sold on the primary market (IPO); afterwards it trades on the secondary market (stock exchange). Rights: share of profit (dividend), share of assets on liquidation, usually voting rights at the annual meeting. Over long horizons, stocks are one of the highest-return asset classes — but volatile in the short term.

Related terms

For educational and informational purposes — not investment advice.