Definition of Stock:
A stock represents ownership in a corporation. In the hustle and bustle of stock trading, and the convenience of on-line investing it is easy to forget that you are buying and selling a true physical asset.
When one purchases a share of a company they are purchasing ownership, a percentage of assets, a right to vote, or a right to future earnings. This is often laid out between the definitions of common stock or preferred stock.
The common mantra for stock trading is still “Buy Low Sell High” and is still the best starting point for beginners.
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[...] true there is some times when selling for a loss is worth it. If you sell enough of your stock to gather up $3000 in losses you can deduct this from your ordinary income. (Read IRS Publication [...]