A stock (or share) represents ownership in a company.
If a company is publicly traded, its shares can be bought and sold on a stock exchange such as:
New York Stock Exchange
Nasdaq
When you own stock, you may:
Benefit if the price increases
Receive dividends (if the company pays them)
Have voting rights on certain company matters
How Stock Trading Works
At a basic level:
You open and fund a brokerage account
You select a stock (identified by its ticker symbol, like AAPL or TSLA)
You place an order (market or limit)
The order is matched with a buyer or seller
The trade is executed
Stock prices move based on supply and demand — influenced by company performance, economic conditions, news, and investor sentiment.
Important Considerations
Before trading stocks, consider:
Your financial goals
Your risk tolerance
Diversification (not putting all funds into one stock)
Fees and taxes
Market conditions
If you’re unsure whether stock trading is right for you, consider consulting a licensed financial professional.