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What Is a Stock?

Own a tiny slice of a real company — and why that matters.

A stock is a piece of a company

When you buy one share of Apple, you own a microscopic slice of Apple — the buildings, the iPhones, the future profits. Companies sell shares to raise money; you buy shares hoping the company grows.

Why prices move

If more people want to buy a stock than sell it, the price goes up. If people expect a company to make more money in the future, they'll pay more today. News, earnings, and mood all push prices around.

How you make money

Two ways: the price goes up (you sell for more than you paid), or the company pays you a dividend — a small cash payment for owning shares.