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Stock

  • Owning a stock means you own a small piece of a company. The more stocks you own, the bigger your piece of the company. If a company sells more stocks, each stock is worth a smaller percentage of the company.
  • When a company is private, team members and investors can own shares, but it takes work to convert these into money. This changes when a company becomes public through an Initial Public Offering (IPO). This allows shares to be bought and sold easily, turning them into money.
  • Valuing a company can be complicated. If it's publicly traded, you can multiply the share price by the number of shares to get the company's worth. But for private companies, it's a negotiation based on factors like the last financing round, revenue, growth, and management quality.

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