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what is a stock and how to make money with it?
I don't know really what a stock is. Why is there a stock for a company? What is it? Are people buying stocks paying for companies' livelihood (i.e. if I buy a stock from Walmart, it's helping Walmart expand?).
Sorry I am in my 20's and pardon me if I sound naive. One person I asked this question to gave me an answer that whoever I bought the stock from was actually from another person who also bought the stock and sold it. Um? If that's the case, how do I get to be the first buyer of the stock? When the price is usually a penny or something low? What does stock buying do to the company we all are buying stocks from? Does it help a company expand?
Here's my other understanding of how to make money with buying and selling stocks:
For example: I buy Walmart's stock for $1 per share. I buy 10,000 shares ($10,000). After 1 year, the stock rose to 50% (.50 cents?), so I decide to sell my stocks. Selling all 10,000 shares at $1.50 a share, thus gaining $5,000 in profit, along with the $10,000 I invested ($15,000 total). Did I get it right or I'm way off?
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