What Are Stocks

 

What are stocks? 

A stock or equity is a portion of corporation that is for sale. Companies put up part of there business for sale. investors can then buy stocks on an open market like the New York Stock Exchange. When you buy a stock you are buying part of the company. Let's look at an example:

I have friend named Ivan Investor. Ivan wants to invest in his money in the stock market. Ivan looks through the stocks on the exchange and chooses to buy stock in the Ford Motor Conpany. He sees that each share ( or part of the company ) is selling for $10.00. Ivan, said that he wants to buy 10 Shares ( or parts of the company ) I will spend $100.00 to be a part owner of the Ford Motor Company. 

a word of caution: All investing involves risk. you should always try and learn about the company and their earnings and investments before you invest in a company. remember you will be a part own of this company so you should know what they are doing and if they are making a profit for you and your fellow investors. check out this video on what a stock is for more information

If you liked this post please leave a comment and a like. 
.