From the course: Understanding Capital Markets (2019)

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What are stocks?

What are stocks?

From the course: Understanding Capital Markets (2019)

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What are stocks?

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- [Instructor] Have you ever thought about investing in the stock market? This question is a common one for most people unsure of how to save their money. The stock market is a system that lets companies sell partial ownership in themselves to people in exchange for cash. Investors get a way to earn a return on cash they want to invest by owning a piece of a company and companies get cash for investors to help grow their business more. Common stocks, which are usually just called stocks, are critical to successful retirement because they have by far, the highest rate of return compared with any other option over the last century. A common stock is a certificate that indicates ownership in a corporation. Once upon a time those certificates were on paper. Today they're all electronic. But when you buy a share, you're buying a part or a share of that company. And so you attain ownership rights in proportion to your…

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