web3/concepts/stock.md

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Markdown

# Stock
A type of [security](security.md) which grants buyers access to [income-cashflows](income-cashflows.md) in a common economic enterprise.
Stocks are valued by the [market](market.md) as a combination of three factors which inform price formation:
1. Momentum
2. Discounted future cash flows
3. Public sentiment
Stocks return [income-cashflows](income-cashflows.md) generated by the enterprise to shareholders via three processes:
1. Dividend payments
2. Stock buybacks
3. Mergers and Acquisitions