Stocks
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What are stocks?
Stocks represent ownership (that is, equity) in publicly traded companies. When you buy a share of stock,
you are actually buying a piece of a company. Companies issue shares in order to raise money for
operating capital or expansion. There are two classes of stock: common stock and preferred stock. Owners
of common stock have voting rights, which means that they can vote on the Board of Directors and other
corporate matters; preferred stock does not include voting rights.