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Placeholder Lesson:
** This lesson is generated with AI assistance and approved by Danny Nelson. This lesson will communicate the essence of the topic for now until Danny can create a full lesson. **
A stock is a financial instrument that represents ownership in a publicly traded company.
Stock owhership allows investors to claim a portion of the publicly traded company's assets and earnings.
When you buy a stock, you become a shareholder and may receive dividends if the company distributes profits.
Stocks are traded on exchanges like the NYSE or NASDAQ, where their prices fluctuate based on supply, demand, and company performance.
There are two main types: common stocks, which offer voting rights, and preferred stocks, which prioritize dividend payments.
Investing in stocks carries risk but can yield returns through price appreciation or dividends.