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FINANCIAL TERMS
Stock
Description
Stock means a small ownership share in a company.
In simple terms, when you own a stock, you own a small piece of that company.
Stocks are important because they allow companies to raise money and give investors a chance to benefit if the company grows. If a company performs well, its stock price may rise, and investors may make money.
For example, if you buy stock in a public company, you become one of its shareholders.
A stock is not the same as a bond. A stock represents ownership in a company, while a bond usually represents money lent to a company or government.