A company is about to go public with uploading. (initial public offering) and the company founders keep a significant portion of the company's stock. this is an example of risk aversion.
Stocks consist of shares in which the ownership of a company or business has been divided. A single share represents a company's partial ownership over the total number of shares.
A stock is a type of security that represents a holder's proportional interest in the issuing company and is sold primarily on a stock exchange. Corporations issue shares to raise funds to operate their businesses. There are two main types of shares: common shares and preferred shares.
For example, if a company owns 100,000 shares and you buy 1,000 of them, you own 1% of the company.
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