Importance of stocks

A stock is a small share that represent a partial ownership of a company. Stock or issued by companies to raise capital every stock is limited to a particular number of shares. Investors buy stocks with the belief that the company will grow continuously or two raise the value of the share. Accruing stock from a new company is consider more risky then buying shares from well-established company but only those company which are list on public exchange like the New York Stock Exchange (NYSE) or the National Association of Securities Dealers Automated Quotation system (NASDAQ)  are capable for stock trading. The share from the companies listed on public exchange can we bought and sold on open market. The stock market is one of the most important source for companies to raise money. This allows business to be publicly traded or raise additional financial capital for expansion by selling share of ownership of the company in public market.

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