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Stock literally means "goods". If you buy some, it means you own a small percentage of the company. If the company's goes up, your stock value increases and you can sell it to someone else for profit.

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16y ago
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14y ago

To earn extra money, companies sell shares of there company called stock. For example, Walmart might sell one share of stock for $36 dollars. Basically, when you buy stock you are an owner of the company, there are millions of owners of corporations as the stocks are divided among millions of people. With one stock, you would theoretically own about 0.00006% of the company, depending on how many total shares of stock there are.

People invest in stocks by buying the stock for say $36, and if the company does well and makes money, the stock price might rise to $50. That person can then sell the stock they bought for $36 at the new $50 price and they would make a $14 profit. That's the basics of how the Stock Market works.

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Q: What does it mean if you buy stock in the stock market?
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