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What is a Stock?

Discover what a stock really is and why people buy them.

  • Explain a stock in your own words
  • Know the difference between a stock and a share
  • Understand why people own stocks

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▶ Video lesson · Watch first
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🍕

Companies are like big pizzas

Imagine a company is a giant pepperoni pizza. Now picture the pizza cut into 1,000 slices. Each slice is called a SHARE. A STOCK is just the whole pizza — the type of company you can own slices of.

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Owners share the profits

When you buy a share, you become a tiny owner of that company. If the company does great, your slice can become more valuable, and sometimes the company even sends you a thank-you gift called a DIVIDEND.

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Why prices move

If lots of kids want the pizza, slices cost more. If nobody wants pizza today, slices get cheaper. That's how stock prices go up and down every single second.

📝 Quiz Time

Complete = +250 VC · Score 80%+ = +500 VC bonus

1. What is one share of a stock most like?

2. Buying a share makes you…

3. Stock prices go up when…

4. A bonus a company pays its owners is called a…

5. If a company does badly, your shares might…

0 of 5 answered5 left
🐶CHWY22.00 0.00%🐱WOOF3.00 0.00%🐄PETS5.00 0.00%🐖IDXX470.00 0.00%🐔ZTS175.00 0.00%🦴ELAN14.00 0.00%🐟PDCO22.00 0.00%🐰FRPT90.00 0.00%🐎TSN60.00 0.00%🐑HRL30.00 0.00%🐶CALM95.00 0.00%🐱PPC45.00 0.00%🐄ADM52.00 0.00%🐖BG80.00 0.00%🐔CTVA60.00 0.00%🦴DE400.00 0.00%🐟AGCO95.00 0.00%🐰MOS27.00 0.00%🐎CF82.00 0.00%🐑NTR55.00 0.00%🐶SMG65.00 0.00%🐱LW65.00 0.00%🐄BRFS4.00 0.00%🐖SAM260.00 0.00%🐔BYND6.00 0.00%🚀BA180.00 0.00%🛰️LMT470.00 0.00%🛸RTX115.00 0.00%🪐NOC490.00 0.00%✈️GD290.00 0.00%🐶CHWY22.00 0.00%🐱WOOF3.00 0.00%🐄PETS5.00 0.00%🐖IDXX470.00 0.00%🐔ZTS175.00 0.00%🦴ELAN14.00 0.00%🐟PDCO22.00 0.00%🐰FRPT90.00 0.00%🐎TSN60.00 0.00%🐑HRL30.00 0.00%🐶CALM95.00 0.00%🐱PPC45.00 0.00%🐄ADM52.00 0.00%🐖BG80.00 0.00%🐔CTVA60.00 0.00%🦴DE400.00 0.00%🐟AGCO95.00 0.00%🐰MOS27.00 0.00%🐎CF82.00 0.00%🐑NTR55.00 0.00%🐶SMG65.00 0.00%🐱LW65.00 0.00%🐄BRFS4.00 0.00%🐖SAM260.00 0.00%🐔BYND6.00 0.00%🚀BA180.00 0.00%🛰️LMT470.00 0.00%🛸RTX115.00 0.00%🪐NOC490.00 0.00%✈️GD290.00 0.00%