What is a stock?


Stocks are pieces of a company. Imagine a company is a large pizza that you can cut into a lot of small pieces. Each small piece represents a part of the company that anyone can buy. That’s a stock. But how does it work exactly? Let’s assume this company (the pizza) is divided into 100 pieces, so each piece represents 1% of the company, or the same as 1% ownership. So, if you buy 10 pieces you can say you own 10% of that company. 

Apple, Facebook, Alphabet (Google), Amazon, Netflix, are all examples of companies you can buy pieces of through Passfolio!

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