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Explain the terms- Stock and Share
Stock
Ownership of a company represented by shares that are a claim on the company's earnings and assets.
Share
Unit of equity ownership in a company or in a mutual fund. This ownership is presented by a share certificate, which names company and the shareholder.
What is risk free rate of return There is a 'risk free rate of return' (also known as time preference rate) which is used to compensate for the loss of not being able to invest
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