Hello class. Today we will be learning about stocks and the stock market. Does anyone know anything about this topic already?
I don't know that much about it, but I've heard my dad talk about it. Apparently he is a shareholder of a company. What is that?
Great question! A shareholder is a person who owns shares of a company, so they legally own a part of that company. Stocks get exchanged during a trading session.
My mom told me that she has a stockbroker. She said that this guy bought her stocks for her, but where do you buy stocks from?
Another great question! There are two different types of companies: private and public. Public companies share their stocks freely on a stock exchange. Private companies may issue stocks of shareholders, but they are held under private ownership. Then, during the trading session, people or stockbrokers buy stocks. One of the most famous and also world's largest stock exchanges is the NYSE, or The New York Stock Exchange.
Ok, well you students have to go to your next class, but we will talk more about stocks and the stock market tomorrow. Tomorrow we will go over what an IPO is.