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Basics

What Is Stock?

Definition and plain-English explanation of "Stock"

Stock — Basics illustration

A stock (also called a share or equity) is a fractional ownership stake in a company. When you buy a stock, you become a shareholder and are entitled to a portion of the company's profits (as dividends) and assets. Stock prices fluctuate based on supply and demand, driven by company performance, investor sentiment, and broader economic conditions.

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