With all the surrounding noise the stock market has been giving off, you might find yourself interested in investing, or trying to explain the market to your girlfriend, grandparents, children or someone who just lacks the basic understandings. These guides are here to help get a better understanding.
The company
Today, one company will be compared to a basic cheese pizza. You having noticed this cheese pizza now want to have a slice for yourself. You wonder how many slices could there actually be? Well the standard listing starts with 10,000,000 slices ??.
One share
A share is a small equal portion of ownership that makes up the company.
When each pizza is made, they are cut into millions of slices. You can buy as many slices as there are available, or you can afford ??. Today a slice of pizza ?? cost 2$ . Now sometimes the price of your slice will change, maybe it will become cheaper, or maybe it will go up. Well everyone at school heard how good their pizza is and they want slices?? too. So today their willing to pay 4$ instead of 2$. Bad news can drop the price as well, after rumors of the basic cheese pizza ALWAYS taste ?? the neighbors will only pay you 1$ a slice.
Stocks
When someone is referring to stocks it simply means they own shares of multiple companies.
This time picture your investments (portfolio) is a bag of halloween candy. ???? ??. As you know each type of candy (share) taste very are different. Each are made different, handled differently and some are held to different standards. All three candy (stocks) when looked at seperately are shares but when bundled together become stocks. The more of one specific candy?? you have, the more shares of that company you own. So you can sell your ?? to own more ??.
The take away
When see a mouse ?? he is just a mouse. When he's with his family then they are mice. If your talking about one specific company then it's shares, and if there's MORE then one kind, then we have stocks.
This article is for entertainment and information. This is not financial advice and i am not a financial advisor, invest at your own risk.
Leave a comment if you enjoyed the content and would like see more. Any suggestions will surely be covered over time. Suggesting them will just make it happen faster ??
