Stocks: Owning a Piece of the Action
01.What is a Share?
A stock represents a tiny share of ownership in a company. If you buy one share of a company like Apple or Disney, you literally become a part-owner of that company! You are a shareholder.
02.How to Make Money
As a shareholder, you can make money in two ways. First, if the company does well, other people will want to buy its shares, so the price of your stock goes up. You can sell it later for a profit! Second, some companies share their profits directly with owners by sending them cash payments called dividends.
03.Public Companies
Companies sell their stocks on a giant market called the Stock Exchange. Anyone can buy shares in public companies, which lets ordinary families participate in the success of the world's biggest businesses.