Core Concept
What Actually Is a Stock?
It's not just a ticker symbol or a line on a chart. It's real ownership in a real business.
Ownership
When you buy a stock, you are buying a small piece of a company. This is also called "equity" or "shares." You become a partial owner of that business.
The Pizza Analogy
Think of a company like a giant pizza. Going public means slicing that pizza into millions of tiny pieces. If you buy one share, you own one slice of the company.
How You Make (or Lose) Money
The value of your "slice" changes based on how well the company is doing and market demand.
Stock Price Goes Up
If the company makes profits or grows, demand increases. You can sell your slice for more than you paid.
High Demand = Higher PriceStock Price Goes Down
If the company loses money or has bad news, people sell. Your slice becomes worth less than what you paid.
Low Demand = Lower Price