what is a stock and how to make money with it?

[thealfa]

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?

[Albern]

Really nice introduction of the stock .
A good way to seek is using internet and thank you for sharing your valueable knowledge .