A stock or share (also referred to as a company's equity) is a financial instrument that signifies ownership in a corporation. It grants the shareholder a proportionate claim on the company's assets (what it owns) and earnings (its profits). Stock ownership means that an investor holds a fraction of the company, relative to the total number of outstanding shares. For example, if an individual owns 100,000 shares in a company with one million outstanding shares, they would have a 10% ownership stake. Most publicly traded companies have millions or even billions of outstanding shares, making stock investment a widely accessible way to own a piece of a company and participate in its financial growth.
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A stock or share (also known as a company's "equity") is a financial instrument that represents ownership in a company or corporation and represents a proportionate claim on its assets (what it owns) and earnings (what it generates in profits). Stock ownership implies that the shareholder owns a slice of the company equal to the number of shares held as a proportion of the company's total outstanding shares. For instance, an individual or entity that owns 100,000 shares of a company with one million outstanding shares would have a 10% ownership stake in it. Most companies have outstanding shares that run into the millions or billions.
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