A stock is a piece of ownership
When a company wants to grow, it needs money. One way to raise it is by selling tiny slices of ownership to the public. Each slice is called a share — and when you own a share, you become a part-owner of that company.
When you buy one share of Apple, you own a very small fraction of Apple Inc. — the same company that makes the iPhone, Mac, and App Store. If Apple becomes more valuable over time, so does your share.
How you make (or lose) money
There are two ways to earn from owning a stock. Capital appreciation: if you buy a share at 200 USD and the price rises to 250 USD, you can sell it for a 50 USD profit. Dividends: some companies pay their shareholders a regular cash amount from their profits.
The risk is that stock prices can fall as well as rise. You can lose part — or all — of what you invested. This is why spreading your money across multiple companies (diversification) matters.
Why prices move
A stock price reflects what buyers and sellers collectively believe a company is worth right now. Prices rise when a company posts strong earnings, launches a popular product, or has a promising future. Prices fall when results disappoint, competition intensifies, or the broader economy slows.
Short-term swings are normal and expected. Long-term, the value of quality businesses has historically grown — which is why investing over time tends to reward patient shareholders.
Where stocks are traded
Stocks are bought and sold on stock exchanges — organised, regulated electronic markets. The two largest are the New York Stock Exchange (NYSE) and the Nasdaq, both in the United States.
Amarah gives you direct access to 5,000+ stocks listed on both exchanges — including the global brands you already use every day.
Key terms to know
Before you buy your first share, a few terms you will see regularly:
- Ticker symbol — the short code for a stock: AAPL for Apple, TSLA for Tesla, AMZN for Amazon
- Market cap — total value of all shares outstanding; a measure of company size
- Share price — the cost of one unit, updated live during trading hours
- Portfolio — your full collection of stocks and other assets
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