Before you open a brokerage account, check that the broker is...

Licensed by your national regulator

Stocks: owning a slice

Every time you buy a snack, ride an app taxi or stream a song, money flows to companies. A stock (or share) lets you own a tiny slice of one.
Own a share and you own part of the business: a claim on its future profits and often a vote at its annual meeting.
Shares trade on stock exchanges: New York, London, Tokyo, Mumbai, Jakarta, Mexico City, Madrid and dozens more.
Two ways to earn: the share price rises, or the company pays you part of its profit as a dividend.
And you can lose. From 2007 to 2009 the S&P 500 fell about 57% and needed until 2013 to recover. A single company can go to zero: Lehman Brothers did in 2008.
Common mistake
Mistake: buying a share because it “already went up a lot” or a friend tipped it. A share is a business. If you can't explain how it makes money, you're guessing.
Key takeaway
A stock is part ownership of a real business. Prices swing a lot, so invest only money you won't need for years, through a broker licensed by your country's regulator.

A stock is... A small piece of ownership in a companyShareholders own part of the company and share in its future profits.
A dividend is... A share of profits paid to ownersCompanies that make a profit may pay part of it to their owners in cash.
Before you open a brokerage account, check that the broker is... Licensed by your national regulatorA licence means rules, supervision and somewhere to complain if things go wrong.
What is the worst that can happen to a single company's shares? They can fall to zeroIf a company goes bust, its shares can become worthless, as Lehman Brothers' did in 2008.