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Stocks in this context refers to companies listed on public stock exchanges, in which investors can buy and sell an economic stake, or share of the company's ownership.  Companies offer stocks as a way to raise funds for its operation and expansion, selling off partial ownership of the company in exchange for cash.  Investors mainly trade stocks for financial gain as well, collecting part of the company's profits as dividends and potentially selling the same shares at a higher price later.
 
Stocks in this context refers to companies listed on public stock exchanges, in which investors can buy and sell an economic stake, or share of the company's ownership.  Companies offer stocks as a way to raise funds for its operation and expansion, selling off partial ownership of the company in exchange for cash.  Investors mainly trade stocks for financial gain as well, collecting part of the company's profits as dividends and potentially selling the same shares at a higher price later.
  
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The value of stocks depends on a subjective valuation of the company.  Stock price generally rises if the company is doing well and investors expect it to keep growing and make more profit.  It generally falls if the company is doing poorly and investors don't see a brighter future.  However, it is also influenced easily by external factors like political climate, release of (mis-)information, or even investors' mood.  It is very hard even for experts to predict stock price movements accurately. This is why scientists should not think they can figure out the stock market, which was the topic of this comic: [[1570: Engineer Syllogism]].
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The value of stocks depends on a subjective valuation of the company.  Stock price generally rises if the company is doing well and investors expect it to keep growing and make more profit.  It generally falls if the company is doing poorly and investors don't see a brighter future.  However, it is also influenced easily by external factors like political climate, release of (mis-)information, or even investors' mood.  It is very hard even for experts to predict stock price movements accurately. This is why scientist should not think they can figure out the stock market, which was the topic of this comic: [[1570: Engineer Syllogism]].
  
 
Through pension funds, mutual funds and other investment vehicles, a large portion of the population of developed countries have an indirect stake in the success (or otherwise) of many of the businesses that make up a significant element of the economy (see above).  An economy that is experiencing healthy growth would generally see the value of those businesses increase, and that is reflected in the value at which investors would be willing to buy and sell those shares.  So a growing economy would tend to associated with rising stock prices.   
 
Through pension funds, mutual funds and other investment vehicles, a large portion of the population of developed countries have an indirect stake in the success (or otherwise) of many of the businesses that make up a significant element of the economy (see above).  An economy that is experiencing healthy growth would generally see the value of those businesses increase, and that is reflected in the value at which investors would be willing to buy and sell those shares.  So a growing economy would tend to associated with rising stock prices.   

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