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A security issued by a company to those who contributed capital in its formation shows ownership in the company. The other terms for it are ‘stock’ or ‘common stock’.
Such shares might be issued via public issue, bonus shares, convertible debentures, etc. and may be traded on the stock exchanges.
Such shareholders have a claim on the earnings and assets of the company
after all the claims have been paid for. This is why such shareholders are also known as the residual owners.