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What is a stock? An explanation of what a stock means, and how that fits into the concept of company ownership and ultimately, being traded on the stock market.

What breakdown what a stock means using a very SIMPLE example!

A company can be divided into smaller pieces (such as a larger cube being divided into smaller cubes) and each such division is a stock! Companies can also pay dividends to each stockholder or retain earnings to instead grow the company. Finally, companies can remain private or ultimately go public, if management determines that going public is in the best interest of the company and it will benefit from a larger stockholder base and access to funding.

Timestamps:
- Start: 0:00
- Ownership of a company: 0:34
- Example to help illustrate the concept: 1:05
- Divide up the company: 3:19
- Definition of a stock: 4:13
- Investors can buy multiple stocks to increase ownership stake: 4:40
- Dividends vs Retained Earnings: 5:06
- Public vs Private: 5:38
- Public stock prices are affected by individual investors: 6:18
- End: 6:55

#Investing #Stocks #Shares #Equity #Beginners #WhatIsAStock #robinhoodapp #robinhoodinvesting