By using the risk evaluation tool called beta, you can measure the movement of your individual stock compared to the S&P 500.

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What is a a stock?

A stock represents an ownership stake in a company as a common shareholder.

Common stocks allow shareholders to vote on company issues, with most companies granting one vote per share.

Some companies also offer stockholders dividend payouts, giving investors a stream of income on top of the market value of the stock.
 


By using the risk evaluation tool called beta, you can measure the movement of your individual stock compared to the S&P 500.