Trading Stocks

Let’s begin with a simple definition: a stock is a security that signifies ownership in a corporation and represents a claim on part of the corporation’s assets and earnings. That means that when you buy a stock of a specific company, you become its owner. 

You own part of the company’s assets, and have a right to participate in its earnings (you obtain a right to receive a dividend). Of course, there are many types of stocks, but it’s worth focusing on common stocks as they have the biggest market share.

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