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Stocks represent ownership in a firm through shares, and shareholders have the right to a portion of the firm's profits.
Stocks are assets in the form of partial ownership of a firm, represented through shares. Shareholders, also known as stockholders, own these shares and have the right to a portion of the firm's profits. For example, if a corporation has 100,000 total shares and someone buys 5,000 shares, they own 5% of the corporation itself.
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