A stock is a unit of ownership in a corporation representing a share in the corporation’s assets and profits. For instance, if a company has 1,000 shares of stock available and you own 100 of those shares, you have a 10% ownership of the company. Stocks are traded (bought and sold) on a stock market, and there are two types of stocks: common stock and preferred stock. Capital stock is the total ownership of a business and includes common stock and preferred stock.

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