Stocks

What is Common Stock?

When you purchase the common stock of a company, you become a partial owner — or shareholder — of the company. The company will ask you to vote for the board of directors each year, and help determine other specific matters. The company also may pay you dividends, which are a distribution of the company’s...

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Investing in Stocks

It seems that everyone is recommending investing in the stock market. To maximize your potential return, you have to be in the stock market, the national financial magazines dictate. “You won’t beat inflation unless you’re investing in stocks,” your financial advisor says. “The Dow Jones Industrial Average reaches yet another all-time high,” the headlines read....

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