š§ Make Your Own Machine: Part 1: What EvenĀ IsĀ a Stock?
Letās start at the very beginning. Youāve heard people say āI bought some stock,ā and maybe you nodded like you knew what they meant⦠but deep down you were thinking:
“Is that like buying a piece of paper? Or betting on something? Or just a grown-up version of Monopoly?”
Hereās the truth:
š A Stock Is a Slice of a Real Company
When you buy a stock, youāre literally buying a piece of a real business. Not a lottery ticket. Not a crypto token. A business.
- Buy one share of Rumble? You own a tiny sliver of the actual Rumble company.
- They make money? You (kind of) benefit.
- They go bankrupt? Well⦠youāre going down with the ship.
Itās ownership, plain and simple.
š„© Imagine It Like a Steakhouse
Letās say your buddy owns a steakhouse. He wants to grow, so he offers you the chance to buy a slice of it.
If you do:
- You now own part of the steakhouse.
- If business is good, your slice is worth more.
- If it tanks, your slice gets you some sad leftover sirloin and a paper napkin.
Thatās what buying stock is ā but instead of a steakhouse, it’s companies like Rumble, Apple, or some sketchy biotech firm promising to cure aging with seaweed (donāt do it).
š” So Why Do People Buy Stocks?
Because good companies tend to grow over time.
If you buy shares in a strong business:
- TheĀ share priceĀ can go up (you make money if you sell higher than you bought).
- Some companiesĀ pay dividendsĀ (tiny payouts just for holding the stock).
- And if youāre like me, you canĀ sell options on your sharesĀ to make even more income (weāll get to that).
š§ Bottom Line
Buying stock = buying a piece of a business.
Not a gamble. Not a get-rich-quick trick.
Youāre investing in something real.
Thatās Step 1. In the next post, weāll talk aboutĀ how to actually buy a stockĀ You donāt need a fancy suit or a Wall Street advisor. You just need a free app like Robinhood (Iāll even give you a link for a free stock in a sec).
And eventually, Iāll show you how to make money on your stock every single week, even if the price doesnāt move.
Want to add your own personal line here, like āThis is the same thing I explained to my buddy last month,ā or should I just keep the clean instructional tone moving forward?
š Up Next: [Post 2: Whatās a Brokerage (and How Do I Pick One)?]
Ready to dip your toes in?
Sign up for Robinhood with my link and weāll both pick a free stock:
š https://join.robinhood.com/ryanr886
No pressure ā but free is free. And Iāll walk you through the setup in the next post.
Iāll walk you through how to set it up in the next post.