Stock is an equity investment. What does that mean for you? Proud ownership of a company you believe is a good investment. So if you invest in a stock, you have an ownership stake in the corporation that issued it, or offered it for sale. The size of that stake depends on the number of shares you own compared to the total number available.
Ownership has its privileges
As a shareholder, you have some basic rights. You can vote for or against the candidates who’ve been nominated to the company’s board of directors. They’re the people who set company policy and choose the chief executive who runs the business. You can also vote for or against proposals the directors or other shareholders make to influence what happens at the company and how it is managed.
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