Author: Subhash Rukade | 📅 Date: September 24, 2025 | ⏱ Reading Time: 25 minutes | 🌐 financeinvestment.site
Beginner’s Guide to Start Investing in Stocks in 2025
Why 2025 is the Perfect Year to Start Investing
If you’ve been waiting for the right time to begin your stock market journey, 2025 could be your golden year.
With technology-driven brokerages, simplified apps, and access to U.S. as well as Indian markets right from your
smartphone 📱, investing is no longer limited to Wall Street insiders. The barriers are lower than ever, and
average Americans can start small—even with just $100.
One reason 2025 stands out is the maturity of digital platforms. From apps like Robinhood, Fidelity, and Charles
Schwab in the U.S. to Zerodha and Groww in India, brokers have streamlined the process so that you can open an
account in minutes. Add to that fractional shares—where you can buy Amazon or Tesla stock with as little as $5—and
investing becomes accessible to almost everyone.
Another reason is the availability of information. Unlike the old days, today’s investors can access free
educational content, real-time stock charts, and analyst ratings without paying hefty subscription fees. With the
right mindset, even beginners can start on equal footing with experienced traders.
Most importantly, Americans are rethinking money after the 2020s economic rollercoaster. Inflation has been a
concern, traditional savings accounts barely keep up, and retirement planning is more urgent than ever. Stocks,
despite risks, provide the opportunity for growth that simply can’t be matched by fixed deposits or regular savings.
If you’re new, don’t worry—we’ll cover everything step by step: from opening your first trading account, picking
the right broker, learning about stock strategies, to alternatives like ETFs and mutual funds. By the end of this
blog, you’ll have a clear roadmap to start investing wisely in 2025.
How Does the Stock Market Operate? From Trading to Settlement
Understanding Market Mechanics
Imagine walking into a massive digital marketplace where millions of people are buying and selling pieces of
companies every second. That’s essentially what the stock market is. Behind the scenes, though, there’s an
organized system that makes sure trades happen fairly, transparently, and quickly ⚡. Understanding this system
is crucial before you place your first trade in 2025.
📌 Stock Exchanges
Stock exchanges are the beating heart of the market. In the U.S., the two most famous are the
New York Stock Exchange (NYSE) and NASDAQ. The NYSE, often symbolized by the
Wall Street building in New York City 🏙, lists some of the world’s largest and oldest companies. NASDAQ,
meanwhile, is tech-focused and houses giants like Apple, Microsoft, and Amazon.
In India, BSE (Bombay Stock Exchange) and NSE (National Stock Exchange) play
the same role. Thanks to globalization, many American investors today also explore Indian markets via ETFs or
international brokers.
📌 Role of the Broker
A broker acts as your gateway. You cannot directly place a buy or sell order on NYSE or NASDAQ as an individual.
Instead, you need an approved brokerage firm like Fidelity, TD Ameritrade, or Robinhood in the U.S. Brokers use
high-speed technology to route your order to the exchange, making sure it’s executed within seconds.
Without a broker, retail investors would have no access to stock exchanges.
📌 Trading Hours
Stock markets don’t run 24/7 like crypto exchanges. In the U.S., regular trading hours are
9:30 AM to 4:00 PM Eastern Time (ET), Monday to Friday. However, investors today can also use
pre-market and after-hours trading sessions offered by certain brokers. These extended sessions
are riskier due to lower liquidity but allow active traders to react to breaking news or earnings reports.
In India, normal market hours run from 9:15 AM to 3:30 PM IST.
📌 Settlement (T+1)
When you hit the “buy” button, the trade feels instant. But in reality, behind the scenes, the exchange ensures
money and shares are transferred safely. This process is called settlement.
In 2025, both U.S. and Indian stock markets follow a T+1 settlement cycle.
That means if you buy shares today, ownership officially reflects in your account by the next trading day.
This system reduces risk for both buyers and sellers.
📌 Why This Matters for Beginners
Knowing how exchanges, brokers, and settlement systems work helps you trade with confidence. Instead of
blindly following tips or social media hype, you’ll understand the process that keeps the system fair.
Remember: every successful investor started as a beginner who first learned how the machine works 🔑.
Complete Guide to the U.S. Stock Market: NYSE, NASDAQ, and S&P 500
U.S. Stock Market in Detail
The U.S. stock market isn’t just an investment hub—it’s the backbone of the global financial system 🌎.
With exchanges like the New York Stock Exchange (NYSE) and NASDAQ, and indices
such as the S&P 500, it influences everything from retirement portfolios to international trade.
Let’s break it down for beginners in 2025.
📌 U.S. Stock Exchanges
The NYSE is the world’s largest exchange by market capitalization, home to blue-chip companies
like Coca-Cola, JP Morgan, and Johnson & Johnson. Its physical trading floor on Wall Street 🏛️ is iconic.
Meanwhile, NASDAQ is fully electronic and known for tech innovators such as Apple, Google, and Tesla.
Together, these two exchanges represent the core of U.S. equity markets.
📌 Popular U.S. Indices
– S&P 500: Tracks 500 of the largest U.S. companies across sectors.
– Dow Jones Industrial Average (DJIA): Includes 30 major companies, often seen as a barometer of
America’s economic health.
– Nasdaq-100: Focused on tech-heavy companies, perfect for investors who believe in
innovation-driven growth 🚀.
These indices are not just numbers on a chart—they are benchmarks guiding trillions of dollars in mutual funds,
ETFs, and retirement accounts.
📌 Global Impact
When the U.S. stock market sneezes, the world catches a cold 🤧.
Events such as interest rate hikes by the Federal Reserve or earnings reports from big tech companies can shake
international markets. This is why even Indian or European investors closely track U.S. indices.
📌 Best U.S. Broker Apps for Beginners
New investors in 2025 have multiple beginner-friendly apps:
– Robinhood: Zero commission and simple design.
– Fidelity: Strong research tools and retirement planning options.
– TD Ameritrade: Ideal for learning advanced trading.
– E*TRADE: Balanced platform for both beginners and active investors.
Choosing the right broker is crucial because it impacts not just your fees but also your trading experience.
📌 Final Thoughts
For U.S. investors, learning about NYSE, NASDAQ, and the S&P 500 is like learning the ABCs of finance.
These markets shape the global economy, and with the right knowledge, you can turn them into opportunities for
long-term wealth building 💰.
🎥 Watch This Explainer
Investor Types and Smart Stock Market Strategies
Understanding Investors and Their Approaches
Every investor in the U.S. stock market falls into a category based on their goals, risk tolerance, and
time horizon ⏳. Understanding these differences is critical because it helps you decide whether you’re
trading for quick gains or building long-term wealth.
📌 Short-Term Traders vs. Long-Term Investors
– Short-Term Traders: These individuals buy and sell stocks within days, weeks, or even minutes.
They focus on technical analysis, charts, and price momentum. While they can profit quickly, the risks
are also higher due to market volatility.
– Long-Term Investors: On the other side, long-term investors follow a “buy and hold” approach.
They trust in the power of compounding and the growth of businesses over years 📈. This strategy has created
some of the wealthiest investors in the U.S.
📌 Value Investing vs. Growth Investing
– Value Investing: Popularized by Benjamin Graham and Warren Buffett, this approach is about
finding undervalued companies—stocks that are trading below their intrinsic value. Investors here look at
financial statements, P/E ratios, and book value.
– Growth Investing: Growth investors bet on companies with strong revenue potential, even if
their stocks look expensive. Tech giants like Amazon and Tesla are perfect examples 🚀. While returns can be
high, the risk of overvaluation is always present.
📌 Dividend Investing
Dividend investing is a favorite among U.S. retirees and conservative investors. Companies like Procter & Gamble,
Coca-Cola, and Johnson & Johnson pay regular dividends, which act as passive income 💵.
By reinvesting these dividends, investors can significantly boost their portfolio over decades.
📌 Warren Buffett’s Strategy Example
Warren Buffett, the Oracle of Omaha, has built Berkshire Hathaway into one of the most successful companies in the world.
His golden rules:
– Invest only in businesses you understand.
– Focus on long-term value rather than short-term noise.
– Stay disciplined and ignore market hype.
Buffett once said, “The stock market is designed to transfer money from the Active to the Patient.”
This timeless advice is why millions of U.S. investors still follow his approach in 2025.
📌 Which Strategy Is Best?
There’s no “one size fits all.” A young professional may prefer growth investing for higher returns, while a
retiree may rely on dividend stocks for stability. What matters is aligning your investment approach with your
personal goals, risk appetite, and financial timeline.
Smart investors often combine strategies—holding dividend stocks for income, growth stocks for expansion, and
value stocks for long-term stability. Diversification is the secret sauce for sustainable success 🌟.
Stock Market Risks Every Investor Must Know
The stock market is exciting, but it’s not without risks. Every investor—from a beginner to an experienced trader—needs to understand the potential pitfalls before investing their hard-earned money. By being aware of these risks, you can protect your investments, minimize losses, and make smarter decisions.
📉 Market Risk
Market risk, also known as systematic risk, refers to the possibility of losing money due to overall market movements. Events like economic recessions, inflation, political instability, or even global pandemics can affect the entire stock market. For instance, in 2020 during the COVID-19 pandemic, markets worldwide experienced significant downturns. No investor could completely avoid the decline, but those with long-term strategies often recovered over time.
💧 Liquidity Risk
Liquidity risk occurs when an investor is unable to sell an asset quickly without reducing its price significantly. For example, small-cap stocks often face liquidity issues because fewer investors are interested in buying them. This means that if you suddenly need cash, selling such stocks might force you to accept a much lower price than expected. On the other hand, large-cap companies like Apple or Microsoft usually have high liquidity since millions of shares are traded daily.
🔥 Inflation Risk
Inflation eats away at the purchasing power of your returns. Imagine you invested $10,000 in stocks that gave you a 5% return annually. If inflation is 6%, your “real” return is actually negative. Over time, inflation reduces the value of money, making it essential to invest in assets that outpace inflation—like quality stocks, ETFs, or real estate. This is why keeping money only in a savings account isn’t always the smartest choice for long-term growth.
😨 Behavioral Risks
Human emotions often cause more losses than market movements. Fear of missing out (FOMO) makes investors jump into stocks at high prices, while panic selling during downturns causes them to lock in losses. For example, many retail investors sold off their shares in March 2020 when markets crashed, only to see prices recover strongly within months. Controlling emotions and sticking to a long-term plan is key to success in the stock market.
✅ Risk Management Tips
- Diversification: Spread investments across stocks, bonds, ETFs, and sectors to reduce risk.
- SIP in Stocks/ETFs: Systematic investment plans help you invest small amounts regularly, reducing market timing risks.
- Emergency Fund: Keep 3–6 months of expenses in liquid assets before investing heavily in stocks.
- Long-Term Focus: Historically, long-term investors have always beaten short-term traders when it comes to wealth creation.
In simple terms, risks are part of the stock market game—but with awareness and strategies, you can turn risks into opportunities. Always remember: Risk and reward go hand in hand. The goal isn’t to eliminate risk completely, but to manage it wisely so your money can grow safely.
Beginner’s Guide to Start Investing in Stocks in 2025
If you’re new to investing, 2025 is an excellent time to get started. Stock markets in both the U.S. and India are more accessible than ever, thanks to technology and beginner-friendly platforms. With just a smartphone and a small amount of capital, you can begin your investing journey today. But before you dive in, it’s important to understand the step-by-step process.
📂 Step 1: Open a Brokerage Account
A brokerage account is your gateway to the stock market. In the U.S., popular brokers like Robinhood, Charles Schwab, Fidelity, and E*TRADE offer commission-free trading. In India, platforms such as Zerodha, Upstox, and Groww are widely used. Choose a broker that offers low fees, an easy-to-use mobile app, and educational resources for beginners.
💵 Step 2: Decide Your Minimum Capital
Many people think they need thousands of dollars to start investing, but that’s a myth. In the U.S., you can start with as little as $1 thanks to fractional investing. In India, the minimum can be as low as ₹100. The key is consistency—investing regularly is more important than the starting amount.
🔍 Step 3: Learn How to Pick the Right Stocks
Stock picking doesn’t mean gambling. It involves research. Beginners should look at:
- Company Fundamentals: Revenue growth, profit margins, and debt levels.
- Industry Trends: Tech, healthcare, and renewable energy are hot sectors in 2025.
- Stock Valuation: Avoid buying overvalued stocks just because of hype.
Alternatively, beginners can start with index funds or ETFs like the S&P 500 ETF (SPY) in the U.S. or Nifty 50 ETF in India, which provide diversification with one click.
📊 Step 4: Understand ETFs and Mutual Funds
If picking individual stocks feels overwhelming, ETFs (Exchange Traded Funds) and mutual funds are great alternatives. They pool money from many investors and spread it across different stocks. For example, Vanguard’s Total Stock Market ETF gives exposure to the entire U.S. market, while in India, SBI Nifty 50 Index Fund is a popular choice. This reduces risk and simplifies investing for beginners.
⚡ Step 5: Start Small and Stay Consistent
Don’t wait for the “perfect” moment. Start small, even if it’s $10 a week. Use systematic investment plans (SIPs) in India or recurring investments in the U.S. to build discipline. The earlier you start, the more you benefit from compound growth, where your money earns returns on both the initial investment and the accumulated returns over time.
In conclusion, starting your stock market journey in 2025 is simple, affordable, and full of opportunities. Focus on learning, invest consistently, and avoid emotional decisions. Remember—every successful investor was once a beginner who took the first step.
Building a Winning Investment Strategy (U.S. & India 2025)
Once you’ve taken your first steps into the stock market, the next stage is creating a sustainable strategy. A clear plan not only helps you stay disciplined but also protects you from emotional decisions like panic selling or chasing quick profits. In 2025, both U.S. and Indian investors have an array of options to design a portfolio that matches their risk tolerance and financial goals.
🎯 Step 1: Define Your Goals
Every investor must start with the “why.” Are you investing for retirement, buying a house, funding education, or achieving financial independence? In the U.S., many investors link their stock portfolio to retirement accounts like 401(k) or Roth IRA, while in India, equity investments often align with long-term goals such as children’s education or wealth creation. Clarity in goals helps you select the right time horizon and risk exposure.
⚖️ Step 2: Decide Risk Appetite
Risk tolerance varies from person to person. Younger investors typically have more time and can afford aggressive growth portfolios, while older investors may prefer stability. For example:
- High Risk: Small-cap growth stocks, tech-focused ETFs, crypto-linked funds.
- Moderate Risk: Blue-chip stocks, balanced ETFs, sector funds (healthcare, energy).
- Low Risk: Dividend-paying stocks, index funds, government bond ETFs.
By understanding your comfort zone, you’ll avoid sleepless nights during market volatility.
📚 Step 3: Choose an Investment Style
There’s no one-size-fits-all strategy. Popular methods include:
- Value Investing: Made famous by Warren Buffett, this approach focuses on buying undervalued companies with strong fundamentals.
- Growth Investing: Ideal for those seeking high returns from companies expected to grow rapidly (e.g., AI, EV, renewable energy).
- Dividend Investing: Generates passive income through regular dividends, perfect for conservative investors.
- Index Investing: Buying ETFs that mirror indices like S&P 500 or Nifty 50 for broad diversification.
📈 Step 4: Diversify Your Portfolio
A common saying is, “Don’t put all your eggs in one basket.” Diversification means spreading your investments across sectors and asset classes. For instance, a U.S. investor might balance tech stocks with healthcare, energy, and bonds. An Indian investor could mix large-cap stocks with mid-caps, debt funds, and gold ETFs. This approach minimizes losses when one sector underperforms.
🔄 Step 5: Monitor and Rebalance
The stock market is dynamic, and your portfolio should adapt. Rebalancing involves reviewing your investments every 6–12 months to ensure your asset allocation still matches your goals. If tech stocks have grown too large in your portfolio, you may want to trim them and reinvest in undervalued sectors. Consistency in rebalancing protects you from overexposure to risks.
📺 Bonus: Learn from the Experts
Financial literacy is key to long-term success. Investors should consume credible resources such as books, podcasts, and tutorials. Watching interviews with successful investors can also provide inspiration and guidance.
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In conclusion, building a winning investment strategy requires patience, research, and discipline. Avoid shortcuts or “get-rich-quick” schemes. Instead, focus on sustainable growth through diversified, well-researched investments. Over time, this approach creates wealth that aligns with your long-term life goals.
Understanding Behavioral Finance in Stock Market
Behavioral finance is a crucial yet often overlooked aspect of investing. While financial knowledge and analysis are important, the psychological side of investing can significantly impact your returns. Understanding common behavioral biases can help you make rational decisions and avoid costly mistakes in the stock market, whether you are investing in the U.S. or India.
😰 Fear and Panic Selling
Fear is a powerful emotion that can lead investors to sell their holdings during market downturns. For instance, during a sudden market crash, many retail investors panic and sell their stocks at a loss, only to watch the market recover shortly afterward. To counter this, it’s important to stay calm, focus on long-term goals, and avoid making impulsive decisions based on short-term market movements.
💡 Overconfidence Bias
Overconfidence can be dangerous. Investors who overestimate their knowledge or prediction skills may take unnecessary risks, leading to losses. For example, a new investor may believe they can perfectly time the market and invest heavily in high-risk stocks, ignoring the fundamentals. Regular self-assessment, continuous learning, and diversification are effective ways to mitigate this bias.
🏷️ Herd Mentality
Following the crowd can be tempting, especially when everyone seems to be profiting from a particular stock or sector. This is called herd mentality. While it may work short-term, it often leads to buying at high prices and selling low during corrections. Developing a disciplined investment plan and sticking to research-based decisions helps avoid this trap.
📊 Anchoring Bias
Anchoring occurs when investors rely too heavily on a specific piece of information, such as the price at which they bought a stock, and make decisions based on it. For example, an investor may refuse to sell a declining stock because they bought it at a higher price, even when fundamentals have changed. Learning to evaluate stocks objectively, without emotional attachment, is essential.
🧩 Loss Aversion
Studies show that losses hurt more than gains feel good. This loss aversion makes investors hesitant to sell losing stocks, hoping they’ll bounce back, or too quick to sell winners to “lock in gains.” Understanding this bias and using stop-loss orders or pre-defined investment rules can protect your portfolio from irrational decisions.
In conclusion, behavioral finance plays a significant role in investment success. Recognizing these psychological biases and learning to manage them will improve your decision-making and enhance long-term portfolio performance. Education, discipline, and self-awareness are the keys to becoming a rational investor in 2025 and beyond.
Managing Stock Market Risks Effectively
Every investment carries risk, and understanding how to manage it is crucial for long-term success. Both U.S. and Indian stock markets offer significant growth potential, but they also come with volatility, market swings, and economic uncertainties. By identifying different types of risks and implementing strategies to mitigate them, investors can protect their portfolios and achieve consistent returns.
📉 Market Risk
Market risk, also known as systematic risk, affects the entire stock market. Factors like economic recessions, geopolitical events, or global crises can impact all stocks. While market risk cannot be eliminated, diversification and long-term investing can reduce its effect. For example, holding both U.S. tech stocks and Indian blue-chip stocks can balance regional market fluctuations.
💧 Liquidity Risk
Liquidity risk arises when you cannot sell an asset quickly without affecting its price. Small-cap stocks and some mutual funds may have lower liquidity. Investors should ensure they maintain a portion of their portfolio in highly liquid assets, like ETFs or blue-chip stocks, to meet urgent cash needs.
🏦 Inflation Risk
Inflation reduces the purchasing power of money over time. If your investment returns are lower than inflation, your real wealth decreases. To counter inflation, consider growth-oriented investments such as equities, REITs, and certain mutual funds that historically outpace inflation. Diversifying globally also helps hedge against local inflation risks.
🧠 Behavioral Risks
Emotional decisions are a major contributor to investment losses. Common behavioral risks include FOMO (Fear of Missing Out), panic selling during market dips, and chasing trends without research. Keeping a disciplined investment plan, setting stop-loss limits, and following systematic investment strategies can help control these risks.
📊 Diversification as Risk Management
Diversification spreads investments across different sectors, asset classes, and geographies to reduce risk. Combining stocks, ETFs, bonds, and commodities like gold ensures that poor performance in one area doesn’t derail your entire portfolio. In 2025, many investors are also exploring ESG-focused and tech-sector ETFs to further balance growth and sustainability.
💡 Risk Assessment Tools
Modern investment platforms offer tools to evaluate portfolio risk. Metrics like beta, standard deviation, and Sharpe ratio help quantify volatility and expected returns. Using these tools, investors can make data-driven decisions and optimize their asset allocation for their risk tolerance.
🔄 Regular Monitoring and Rebalancing
Risk management is an ongoing process. Regularly reviewing your portfolio ensures that asset allocation stays aligned with goals and risk appetite. Rebalancing by trimming overperforming sectors and adding underrepresented assets maintains balance and mitigates concentration risks.
In conclusion, risk is an inseparable part of investing, but proper awareness and strategies can protect your capital. Market risk, liquidity risk, inflation risk, and behavioral risk require active attention. By diversifying, leveraging tools, and maintaining discipline, investors can confidently navigate the stock market while maximizing potential returns.
How to Start Investing in Stocks: Step-by-Step Guide (U.S. & India 2025)
Investing in stocks can seem intimidating, especially for beginners, but taking a systematic approach makes it manageable and rewarding. In 2025, both U.S. and Indian investors have access to user-friendly broker apps, ETFs, and mutual funds that simplify investing. This final part of our guide will walk you through the essential steps to start your investment journey confidently.
1️⃣ Define Your Financial Goals
Before investing, clarify your objectives. Are you investing for retirement, a home, children’s education, or wealth creation? In the U.S., investors often tie stock investments to 401(k), Roth IRA, or brokerage accounts. In India, goals are linked with long-term wealth creation using SIPs in mutual funds or direct equity. Clearly defined goals dictate investment horizon, risk tolerance, and portfolio strategy.
2️⃣ Choose the Right Broker
Selecting a reliable broker is crucial. Consider fees, app usability, research tools, and customer support. In the U.S., popular options include Fidelity, Charles Schwab, and Robinhood. In India, Zerodha, Upstox, and Groww dominate the market. For beginners, platforms with low fees and intuitive interfaces are preferable.
3️⃣ Understand Minimum Investment & Capital
Stock market investing doesn’t require huge capital. Many U.S. brokers allow fractional share purchases, so you can start with as little as $10. In India, SIPs in mutual funds start at ₹500 monthly. Starting small helps reduce risk while gaining experience and confidence.
4️⃣ Learn About Asset Types
Familiarize yourself with different assets:
- Stocks: Individual shares of companies.
- ETFs: Diversified portfolios that track indices or sectors.
- Mutual Funds: Professionally managed portfolios suitable for beginners.
- Bonds & Fixed Income: Low-risk assets providing stable returns.
5️⃣ Pick Stocks & ETFs Strategically
Research and select investments aligned with your goals and risk appetite. Use fundamental analysis for value stocks and technical analysis for short-term trades. Diversify across sectors and geographies to mitigate risk. For example, a U.S. investor might mix tech, healthcare, and energy ETFs, while an Indian investor may combine large-cap stocks, mid-cap stocks, and debt funds.
6️⃣ Practice with Simulated Accounts
Many broker platforms offer virtual trading accounts. These allow beginners to practice buying and selling stocks without risking real money. It’s a great way to build confidence and understand market mechanics before committing capital.
7️⃣ Set Up Risk Management
Always establish risk management rules. Use stop-loss orders to limit potential losses and take-profit points to secure gains. Diversify and avoid investing all capital into a single stock. Consistent risk management ensures long-term sustainability.
8️⃣ Keep Learning & Monitor Portfolio
The stock market is dynamic. Keep yourself updated with market news, earnings reports, and economic trends. Rebalance your portfolio every 6–12 months to maintain allocation aligned with your goals. Continuous learning helps adapt to new market opportunities and challenges.
9️⃣ Leverage Technology & Apps
Modern investing apps provide insights, automated investing options, and AI-powered recommendations. Tools like robo-advisors, investment calculators, and notifications can enhance your investing efficiency while reducing mistakes.
🔟 Affiliate & Learning Opportunities
Consider educational courses, books, and affiliate programs to expand knowledge. Platforms like Amazon offer top-rated investment books and tools that can accelerate your learning. (Affiliate links included discreetly within the platform for U.S. users.)
By following these steps—defining goals, selecting brokers, understanding assets, diversifying, practicing, and managing risk—you can build a strong foundation for wealth creation. The key is consistency, patience, and informed decision-making. Whether you are in the U.S. or India, starting early in 2025 provides the advantage of compounding returns over time.
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Author: Subhash Rukade | Date: September 24, 2025 📅 | Reading Time: 25 min | Website: financeinvestment.site
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