Stock is a claim to the assets and income of the company. Your ownership position in the company increases as you purchase additional stock. A stock certificate serves as a representation of a stock and is now referred to as having shares “in street name”. Your voting power in the annual meetings of the firm is limited to one vote per share for the election of the board of directors. The goal of the company’s management is to make the business more valuable to shareholders. Being a shareholder is significant because it gives you a claim on corporate assets and a share of the earnings. Although stocks have the potential to generate enormous wealth, they also carry a high level of risk.

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