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| A stock is a unit of ownership of a company. |
If you own a stock, it means you own the particular company partly in proportion with the number of shares you have to total number of shares of that company.
You have the right to vote on company's decisions. You will recieve equal share in profit disbursements.
The important aspect of owning a stock is, the limited liability. That means, if you own a company's stocks and company goes into huge losses in excess of assets, your stock may maximum become junk papers. You are not liable to pay from personal assets of you. |
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