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What is a Stock?

Posted by Ky Spector on

People think buying stock is like buying a lottery ticket....

When you buy stock you are becoming an owner in a real fully operational business. The value of your shares (stock) will go up or down based on how that particularly company is performing.

Some of the stocks you buy also pay something called dividends. Dividends are an excellent way to create passive income, but I won't go into detail in this article.

See "What are Dividends?" to learn more.

By investing in stock you benefit from both sides of business by switching roles from being not only a consumer, but also an owner.

Confused? Let me break it down...

Let's say you buy stock in Disney. You are now a part owner of Mickey Mouse.

From now on every time you visit Disneyland or buy a ticket to a Disney movie, you help the value in your stock go up.

Crazy right!? Now you are probably wondering how to buy it. If you're reading this the odds are you're a beginner investor.

I know I provided an easy example, but buying stock can be a difficult and expensive process. This is why most people let their brokers or someone experienced do it for them.

Don't worry, I've got a few ways for you to get started.

If you want to invest without having to do the work yourself and you. There's an app called Acorns that you can link up to your account that invests your change, and helps save the world. Click Here to see it.



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