1. Briefly explain the concept of stocks and their importance in financial markets.

• 2. Explain what common stock represents and its ownership features.
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• 3. Illustrate the risk associated with common stocks, such as market volatility and potential losses.
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• 4. Explain common stock valuation methods, such as price-to-earnings ratio (P/E) and market sentiment.
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Answer rating: 100% (QA)

1 Stocks represent ownership shares in a company They are bought and sold in financial markets such as stock exchanges and serve as a way for companie... View the full answer