What is a Stock: Beginners Guide to Investing


What exactly is a stock?
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-If you purchase stock in Google, you own a small fraction of Google.
-When you purchase stock, you’re buying a piece of the company.
-People buy stock in order to invest
-Companies sell stock in order to gain revenue (money to build/grow the company)

-A person starts a candy cane company, invests a lot of money, and the company is worth $100,000
-In order for this company to grow larger, it needs more equipment and employees
-The company needs more money to get the equipment and employees
-Instead of going to a bank to borrow the money, stock comes into play
-The candy cane company sells stock (or pieces of the company)
-Other people invest in the company and in turn, own part of the company
-The investors are looking for a financial gain
-If the company doubles its revenue, the investors also double their money (i.e. if one person invested $30,000 that initial investment is now worth $60,000)
-The investors benefit as the company grows


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  1. If the investors invested 100,000 and your company is currently worth 100,000, after they invest wouldn't the company be worth 200,000? And your investors wouldn't be making double their investment but rather break even? Sorry just a few questions.. if anyone can explain that would be great.

  2. i have a question, if a company worths 1million and i invested with 200k, does it mean that i get 20% of the company's profits?

  3. Listen up guys looking for stock and investing videos on YouTube, this guy right here has the idea! Great video and very well explained.

  4. Hi sasha, thanks for uploading video… I never bought any stocks or share… will you guide me how and from where to start buying shares or stocks? Even I don't know what is the difference between share and stocks… i would be really grateful if you give me some guide lines. thanks

  5. Thank you for breaking it down! I set up me account with Ameritrade 2 months ago! I was so lost so far your channel and other YouTube channels are teaching me alot!

  6. Good video for investing. I put out a video on how to select stocks using a 5 stop process on my channel, check it out, I hope it helps some folks!

  7. does it have to be a substantial amount or can it be like $2,000 as I'm only 17 but really want to learn and invest some time soon


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