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Stock

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Term Main definition
Stock

Shares of ownership in a company. When a company goes public, it issues shares of stock to the public (see also initial public offering). Many, but not all, stocks pay dividends — a distribution of a portion of the com- pany’s profits. In addition to dividends, you make money investing in stock via appreciation in the price of the stock, which normally results from growth in revenues and corporate profits. You can invest in stock by purchasing indi- vidual shares or by investing in a stock mutual fund that offers a diversified package of stocks.

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