In our beginners guide to investing we are going to cover what is a stock? Give a better detailed explanation about exactly how the stock market works (in relation to stocks) and detail the actual definition of stocks.
When we begin to invest in the markets one of the most popular things to buy are stocks. So what is a stock exactly? A stock is essentially a piece of paper that says you are part owner of a company. It is as simple as that.
When you buy a stock you are part owner of the company. Let's say that you buy 1 share of stock of Google. 1 share signifies a piece of stock. If there are a total of 100 shares of stock for Google and you own one (1 divided by 100) you own 1% of Google.
That is a simple explanation of the question what is a stock?
After a company goes public they use an initial public offering in order to raise money from the public and sell their shares of stock. Most times a company has millions upon millions of shares of stock. Now there are different ways to value a company to see if their shares of stock are expensive or not.
Once you own a share of stock from a company in order to sell that share of stock you need to enter into the stock market. The stock market is the overall market of where stocks are bought and sold. We buy and sell stocks through a broker just like how we use a bank to write checks or keep money in a savings account.
Let us know if you have any other questions of what is a stock. We will continue our beginners guide to investing series here shortly with more videos to help you understand how the market works.
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What Is A Stock? Beginners Guide To Investing how to trade in roblox | |
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| How-to & Style | Upload TimePublished on 11 Sep 2015 |
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