What is a Stock




 Now in all the above articles you might be hearing this word so many times. See you should understand the real concept so that you can explain it to a 10 year old Child. Lets dive into the meaning and concept of stock. I would like to explain the concept through a story.

   George is a guy living in a remote village. He has got some spare cash. He planned to start a business .He started a coffee shop. He appointed a lady as employee. Now his whole business is of 50000$ value. After an year he planned to sell it  and he don't want to sell the whole business  but only a portion. So he divided the whole business into small units so that everyone can buy it. He divided the whole business into 10000 equal units; now a single unit cost 5$.This 5$ unit is called a share.

A share is actually a piece of ownership in a real business. Don't consider it as ticker but as a real ownership.

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