Saturday School — What Does It Mean to Buy a Company’s Stock?

Saturday School — What Does It Mean to Buy a Company’s Stock?
Photo by robert cicchetti / Shutterstock.com

If you’re new to investing, the concept of stocks can seem a little scary. What exactly are they? And what are the risks — and rewards — of purchasing them?

In a nutshell, when you buy a share of stock, you become part owner of a company. That means you have a financial stake in the ups and downs of the business.

But there is so much more to know before you invest. Watch this Khan Academy video, and you’ll learn about many aspects of investing, including:

  • How stocks differ from bonds
  • The definition of assets and liabilities
  • How concepts such as book value can indicate whether a stock is worth buying

For more investing advice, check out:

Do you have any tips for beginning investors? Share them by commenting below or on our Facebook page.

Popular Articles

9 Houseplants That Remove Toxins From Your Indoor Air
9 Houseplants That Remove Toxins From Your Indoor Air

These plants may also do everything from reducing the amount of dust in your home to boosting your happiness.

10 Habits Happy People Use to Make Life Better
10 Habits Happy People Use to Make Life Better

If you want to walk through life with a smile on your face, try these habits on for size.

21 Things You Should Always Buy at a Dollar Store
21 Things You Should Always Buy at a Dollar Store

The dollar store is the most amazing place to find bargains for certain purchases. Yes, even pregnancy tests.

View this page without ads

Help us produce more money-saving articles and videos by subscribing to a membership.

Get Started

Comments