Buying and selling pieces(stocks) of a company's overall worth. The stock holder owns a piece of the company and is paid a portion of the company's profits every year or quarter year, based on the number of stock they have. Because stock prices change often, you can also make money by buying a stock at a cheaper price than you sell it for.
Jason was stock trading online and bought 1,000 shares of stock from Microsoft, for 20 dollars each, investing $20,000. Two weeks later, Microsoft shares are worth 25 dollars each. Jason can sell them for a profit of $5000.
by WallStBuddy July 01, 2014