What Is a Stock?

A stock represents a share of ownership in a company, giving shareholders a claim on part of the company’s assets and earnings. When you buy a stock, you become a partial owner of that business. Simply put, imagine a pizza sliced into many pieces — buying a stock means you own one slice of that pizza and get to enjoy a bit of what the company makes.

Why Do Companies Issue Stocks?

Companies issue stocks to raise money to grow, expand, or pay off debt. It's a way to bring in funds from the public without taking out a loan. In return, investors get a chance to share in the company’s success.

How Do Stocks Work in Real Life?

Stock prices change based on supply and demand; when more investors want to buy a stock, its price rises, and when more want to sell, it falls. Think of it like a popular sneaker release — if everyone wants it, the price goes up; if not, it drops.

The Difference Between Common and Preferred Stocks

Common stocks usually give you voting rights and the chance to earn dividends. Preferred stocks often pay steady dividends but don’t come with votes. Think of it as the difference between being in the driver's seat or enjoying the ride.

Why People Buy Stocks: Investing for Growth and Income

People buy stocks to grow wealth over time, earn passive income through dividends, and support companies they believe in. Stocks are one of the most accessible and rewarding ways to build financial independence.

Where Stocks Are Traded: Understanding Stock Exchanges

Stocks are bought and sold on exchanges like the NYSE, NASDAQ, or London Stock Exchange. These are like giant marketplaces where investors trade shares in companies every business day.

Stock Prices: What Makes Them Go Up and Down?

Stock prices change constantly based on supply and demand, earnings reports, economic news, and even social media buzz. If more people want to buy than sell, the price goes up — and vice versa.

How to Buy Your First Stock (Without Feeling Overwhelmed)

Using apps like eToro or Trading212, you can buy your first stock with just a few taps. Start with companies you know, use fractional shares if needed, and never invest money you can’t afford to lose.

Risks of Investing in Stocks and How to Handle Them

Yes, stocks can be risky. Prices go up and down. But spreading your money across different companies (diversifying) and thinking long term can help you stay calm during market dips.

Stocks vs Other Investments: Why They Stand Out

Compared to bonds or savings accounts, stocks offer higher potential returns. They’re more volatile, yes, but also more likely to grow your money significantly over time if you invest wisely.

Start Copying

Follow me on YouTube and Instagram for investing tips for beginners

Whether you're trying to figure out how to start investing, want to learn how dividends work, or just need a step-by-step guide to using platforms like eToro, Trading 212 and TradingView, I’ve got you covered.

How to Use the Watchlist on eToro

Learn how to use the eToro watchlist like a pro with this friendly step-by-step guide. Track stocks, ETFs, and commodities easily — perfect for beginners.

Oliver Narramore

May 28, 2025

How to Buy Your First Stock on eToro

Ready to buy your first stock on eToro? In this step-by-step beginner's tutorial, I'll walk you through the exact process using Amazon as an example. You'll learn how to search, buy, sell, set stop-loss and take-profit levels, choose between market and limit orders, and more. eToro’s platform is clean and easy to use, and by the end of this video, you’ll feel confident enough to start investing—or even teach someone else!

Oliver Narramore

May 25, 2025

How to Track Your Dividends and Key Dates on eToro (The Easy Way)

Learn how to use eToro’s economic calendar and statistics features to track dividend payments, ex-dividend dates, and portfolio yield with ease. A quick and friendly guide for investors.

Oliver Narramore

May 22, 2025

The Dividend Drip Blog: Build Wealth, One Payout at a Time

Whether you're a seasoned income investor or just starting to explore the power of compounding, our blog delivers practical tips, portfolio strategies, market insights, and deep dives into dividend-paying stocks.

We believe in steady, long-term growth and the power of passive income to transform your financial future. Join us as we drip-feed financial wisdom straight into your portfolio.

Read Our Blog