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A piece of ownership in a company like McDonald's, IBM, Walmart, or Microsoft is a called a share of _________________________.liabilitystockprofitrisk

Question

A piece of ownership in a company like McDonald's, IBM, Walmart, or Microsoft is a called a share of ___________________________.

liability
stock
profit
risk

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Solution

A piece of ownership in a company like McDonald's, IBM, Walmart, or Microsoft is called a share of stock.

In financial terms, shares represent an ownership stake in a corporation and signify a claim on part of the company’s assets and earnings. When you purchase shares of a stock, you are buying a small piece of that company. Stocks can be categorized into two main types: common stocks, which typically entitle the owner to vote at shareholder meetings and receive dividends, and preferred stocks, which provide dividends but generally do not have voting rights. Owning shares can be a way for individuals to invest in the company’s potential growth and profit, as the value of the shares may increase over time, often reflecting the company’s performance in the market.

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