What a stock is

Owning a share means owning a small piece of a real business.

Click any Tap any word with a dotted underline to see what it means.

A company can divide its ownership into millions or billions of equal pieces called shares. When you buy a share, you become one of the company's owners, even if your piece is tiny.

Why share prices move

On the stock market, buyers and sellers trade shares with each other throughout the day. The price is simply the last price at which a buyer and a seller agreed. It changes as people's views about the company's future change: new results, news about its industry, interest rates, or the general mood of the market.

The price and the business are connected, but not the same

Over long periods, a company's share price tends to be connected to how much money the business makes. Over days or months, prices can move for many reasons that have little to do with the business itself. That is why StockLab starts with what the company does and how its revenue, profit and cash have changed, and treats the price chart as context.

What owning shares can give you

• A share of the company's value, which can go up or down.
• Dividends, if the company pays them.
• For most shares, a vote at shareholder meetings.