Chapter 1: Stocks (C8927083)


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    Word count: 77 words

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    At formation, the stock of a company is partitioned into a set number of shares, which is a fraction of stake/ownership, representing the residual assets that the stockholders would receive, after discharge of all debt claims. Additional shares may be subsequently issued by the company, if authorized by existing shareholders.

    There may be different classes/types of shares, each having different rules, privileges, or share values.

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    Financial markets - Financial markets - MR. SHUM'S CLASSROOM