How does the stock market work for beginners

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    What is Stock Market and How it Works?

    A stock, also known as a share or equity, represents ownership in a company. When an individual purchases a stock, they essentially become a partial owner of that company, entitled to a share of its profits and voting rights in certain matters.

    Common stocks are the most prevalent type, providing shareholders with voting rights and potential dividends, although not guaranteed. Preferred stocks, on the other hand, offer priority in dividend payments but often lack voting rights.

    How does stock market work in india

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  • Stocks are traded on various stock exchanges, where investors buy and sell these ownership shares. The value of a stock is determined by factors such as the company's performance, economic conditions, and market sentiment, making the stock market a dynamic and ever-changing financial ecosystem.

    Types of Stock

    There are primarily two types of stock: common stock and preferred stock.

    This is the most prevalent type of stock and represents a share in the ownership of a company.

    Common stockholders typically have voting rights and may receive dividends, althoug

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