What is a stock?
When you buy a stock, you are buying a piece of the underlying business.
One of the biggest problems I see with new investors is that they think stocks are just a blip on a screen. They don't realize what it truly means when you buy a stock.
A stock is nothing more than an ownership stake in a business. If you buy stock in Apple, you are a part-owner. If you buy Starbucks stock, you are a part-owner. Tesla. Airbnb. Costco. Visa. Facebook. If you buy stock, you are part owner.
The most commonly referred to type of stock is publicly traded stock on the stock market, but you can also buy (earn, or be gifted) stock in a private business as well. Again, stock is just an ownership stake in a business.
Think of the stock market as nothing more than a marketplace to connect buyers and sellers. It's like Craigslist or Facebook Marketplace. The stock market connects current stockholders who want to sell with those who would like to buy stock (or ownership) in a given business.
When you can buy a company's stock in the stock market, that just means it's "publicly traded". If you cannot buy stock in a company using the stock market, it is typically a privately held company (but that doesn't mean you can't buy/own stock, you just have to get it through a private transaction rather than a public marketplace).
Typically, companies that are publicly traded are so large that individual investors own a minuscule % of the business - say 0.00000001%. While that is true, YOU ARE STILL AN OWNER NONETHELESS.
Remember this when you are buying stocks - you are buying OWNERSHIP in a REAL BUSINESS, NOT just a BLIP on a screen.
All the best,
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