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What are stocks?

Stocks are securities issued by a joint-stock company to investors to prove their shareholder rights and investment amount in the company, and to obtain dividend income.

The holders of stocks are shareholders, who legally own part of the ownership of a joint-stock company, enjoy certain rights and obligations in operation and management, and bear the company's operating risks.

Each share of stock represents a shareholder's ownership of one basic unit of the business.

Stocks are a component of a joint-stock company's capital and can be transferred, bought and sold, or used as collateral. They are the main long-term credit instrument in the capital market.

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