What Is a Stock? A Slice of Ownership

After starting this blog, one word kept popping up again and again.

Stock.

People said things like “the stock market is up” or “I’m investing in stocks.”
But I realized I didn’t really know what a stock actually was. So I asked my dad.

“What is a stock, exactly?”


A stock is a piece of a company

That was the first thing I learned.

Let’s say a company — like Roblox — wants to raise money to grow. Instead of taking out a loan, it can “go public” and offer shares of the company to regular people.

Each share represents a tiny slice of ownership.
If there are 1 million shares and you own 1 share, you technically own 1 out of a million parts of that company.

It doesn’t mean you can walk into Roblox HQ and start giving orders.
But it does mean you have a claim on the company’s profits, and sometimes, even a vote in big decisions.


Real companies, real ownership

At first, this felt strange.

I thought “investing” was just about clicking buttons on an app and watching numbers go up or down.
But now I realized it’s not just numbers. Stocks represent real companies — with employees, products, buildings, and goals.

That means when I buy a share of Apple or Nike or Nintendo, I’m not just betting on a brand.
I’m becoming one of the millions of owners.

Even if it’s a small part, it still counts.


Why would anyone want to own a stock?

Good question.

Here are a few reasons people buy stocks:

  • They believe the company will grow.
    If the company becomes more valuable, the stock price may go up — and you can sell it for more than you paid.
  • Some companies share profits.
    That’s called a dividend — a small payment some companies give to shareholders regularly. I’ll write more about this in a future post.
  • They want to feel connected.
    Some people invest in companies they admire or use every day. Like owning Tesla because you love the mission, or Disney because you grew up with it.

Not all stocks are the same

This part surprised me.

Some companies are big and stable, like Microsoft or Coca-Cola. Others are newer and riskier, like small tech startups.

Some stocks are expensive — over $1,000 per share.
Others are just a few dollars.

But price doesn’t always mean value. What matters is how strong the company is and how much it can grow over time.


Owning a stock makes you think differently

Ever since I started looking into stocks, I’ve been thinking differently when I walk through a mall or scroll through YouTube.

Who owns this company?
Are they making money?
What would happen if I owned a share?

I don’t see products and logos the same way anymore.
I see businesses.


What I Learned

  • A stock is not just a number — it’s a piece of a real company.
  • Owning even one share makes you a part-owner.
  • Companies sell stock to raise money, and people buy stock to grow their money.
  • Thinking like an owner makes me see the world differently.

Next up:
If one stock is a piece of one company… how can I own a whole group of companies at once?
That’s what I’ll explore next week — and it has to do with something called an ETF.


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