“Buy” is one of the most fundamental terms used in stock trading. It refers to the process of purchasing shares of a particular company’s stock in the stock market. The decision to ‘buy’ or invest in a company involves a prediction that the company’s stock price will increase in the future, thereby offering a return on investment.
When you ‘buy’ a stock, you’re essentially buying a piece of the company and, as a result, you become a shareholder. As a shareholder, you have the right to share in the company’s profits distributed as dividends, if the company chooses to pay them.
The process of buying stock can usually be accomplished through a broker or an online trading platform. The price you pay for the stock will be the current market price, plus any additional broker’s fees or commissions.
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