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What is a “stock”?
October 29, 2007 in Investing Basics
(This post is a part of the series Basics of Finance and Investing.)
Unlike a debt type security such as a money market or a bond, a stock is an equity or ownership type security, which entitles its buyer one share in the ownership of the issuing corporation. Because the risk of investing in a stock is significant (you may lose your entire invested asset if the corporation faces bankruptcy), stocks are examples of a variable income type security.
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