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What exactly is a stock?

-If you purchase stock in Google, you own a small fraction of Google.
-When you purchase stock, you’re buying a piece of the company.
-People buy stock in order to invest
-Companies sell stock in order to gain revenue (money to build/grow the company)

Example
-A person starts a candy cane company, invests a lot of money, and the company is worth $100,000
-In order for this company to grow larger, it needs more equipment and employees
-The company needs more money to get the equipment and employees
-Instead of going to a bank to borrow the money, stock comes into play
-The candy cane company sells stock (or pieces of the company)
-Other people invest in the company and in turn, own part of the company
-The investors are looking for a financial gain
-If the company doubles its revenue, the investors also double their money (i.e. if one person invested $30,000 that initial investment is now worth $60,000)
-The investors benefit as the company grows

#stockdefinition #stockbasics #stocktrading #stockbeginners

Posted at: https://tradersfly.com/blog/beginners-guide-to-investing/

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? DISCLAIMER
All of the stocks mentioned in this video along with any other videos we have are opinions and not investment, financial or legal advice. These videos are for general education, information, and entertainment. Do your own due diligence and consult with a registered financial advisor before taking any position since everyone has a different risk tolerance.

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