Q. What is Stock
A. Imagine that you own a business. If you
were to divide that business up into small pieces and sell those
pieces, you would essentially have issued stock. Quite simply,
stock is ownership in a company.
The money you raise from selling those
"pieces" of your business can be used to build new plants and
facilities, pay down debt, or acquire another company. A smart
owner will keep at least 51% of the stock, which will allow them
to retain control of the day to day activities. Any person or
institution that owns over a majority of the stock is called the
"controlling shareholder". Essentially, this person can do
anything they want - right down to firing the CEO.