When you buy a stock, you buy a small ownership slice of a company. If the company grows, your shares become more valuable. Many companies also pay dividends — regular cash payments from profits.
Answer: Partial ownership of the company. Stocks represent equity — actual ownership in the company that issued them.
Answer: Cash payments from company profits. Dividends are a portion of profits distributed to shareholders, often quarterly.
Answer: The total value of all outstanding shares. Market cap = share price × total shares outstanding. It's the company's total market value.
Answer: After bondholders and creditors. Stockholders are last in line — bondholders and creditors have priority in bankruptcy.
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