http://en.wikipedia.org/wiki/Stock

A stock is a share in the company's earnings and assets. There can be many factors influencing the rise and fall of the stocks and of course, earnings will be one of them.

It is like buying a small part of a company you like. If there for example 1 million shares that you can buy at any given price then when the company does well and makes a profit. You share the wealth as in: the stock/share price goes up so you could sell and make a profit, you also get to share the profit in the form of dividends; the profit is shared amongst all the people who own the stock. But you can also lose money if the company does not do well and the price falls, then there are obviously no dividends. You have to pick a company based on a number of factors and the risk involved, more risk higher rewards and higher losses

Stocks are small pieces which show ownership of a corporation. When you don't invest correctly, you can go bankrupt. If the corporation goes bankrupt. If you don't watch that that stock is doing. Investing is putting money into something and expecting a return or more money for that money. It can cost as little OR as much as you would like to put into the investment. BUT you have to do your research AND you must remember there is a commission you pay to the broker - when you buy AND when you sell. You MUST make a set of trading rules for each way you think you would like to trade. To learn more about stocks and trading, I ALWAYS suggest going on-line and doing research about the different investments AND how to properly trade. There are also books yuo could buy or borrow from your local library. They work by being bought and sold through diffe3rent types of brokers - on-line and full-service. The broker earns money for his/her brokerage by bringing the BEars [SEllers] and the BUlls [BUyers] together. The purpose of buying and selling stocks is to raise “capital” [money] for that company and the brokers. Those selling the stocks have the opportunity to earn money OR because those Bears may not be on the profitable side of the trade, they could lose money. While the Bears are selling, the Bulls are buying. Bulls are under the impression the stock will go higher. Those buying the stocks have the opportunity to earn money – when and if the price of that stock goes higher OR because those Bulls may not be on the profitable side of the trade, the stock goes down, they could lose money. While I'm writing about th subject, you should know a little more information: A BUll market is a rising market or rising trend. This is caused from BUyers [BUlls]. It’s my observation the term originated from the way a bull defends himself: moving the head in an upward direction. A BEar market is a falling/declining market or falling/declining trend. This is caused from SEllers [BEars]. It’s my observation the term originated from the way a bear defends himself: moving the paws in a downward direction. Thanks for asking your Q! I enjoyed answering it! VTY, Ron Berue Yes, that is my real last name! Sources: My wonderful family! My wonderful coaches and mentors! THE ABSOLUTE BEST, MOST wonderful trading group in the world, which I am most proud to be a member of! Trading more than 2 years. "THE University of Hard Knocks"