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It is different from a bond, which operates like a loan made by creditors to the company in return for periodic payments. A company issues dotbig review to raise capital from investors for new projects or to expand its business operations. The type of stock, common or preferred, held by a shareholder determines the rights and benefits of ownership. Growth stocks have earnings growing at a faster rate than the market average. They rarely pay dividends and investors buy them in the hope of capital appreciation.
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