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What is a stock?
A stock is a financial instrument, or monetary contract, denoting partial ownership of a corporation. A unit of stock is called a share. A company issues shares when it divides ownership among investors or employees. Both public and private companies may issue shares, but they are traded and valued differently. The valuation, or market capitalization, of a publicly-traded company is equal to the number of shares outstanding multiplied by the current stock price.
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