Sticky Academy’s 7-minute video simplifies stock market fundamentals using relatable analogies, making it ideal for complete beginners curious about terms like “buy the dip” or Tesla investments.
Sticky Academy’s 7-minute video simplifies stock market fundamentals using relatable analogies, making it ideal for complete beginners curious about terms like “buy the dip” or Tesla investment.
What Are Stocks?
Stocks represent partial ownership in a company. Buying a stock means acquiring a tiny slice of that business, like owning one piece of a chocolate cake divided into thousands or millions of shares.
Companies issue stocks to raise capital for growth building factories, developing products, or expanding without repaying the funds like a bank loan.
Common vs. Preferred Stocks
| Type | Voting Rights | Dividends | Bankruptcy Priority | Growth Potential | Risk Level |
|---|---|---|---|---|---|
| Common | Yes (1 share = 1 vote) | Possible, not guaranteed | Last in line | High | Higher |
| Preferred | No | Fixed, priority payment | Ahead of common, behind debts | Lower | Lower |
Common suits growth seekers; preferred appeals to income-focused investors.
Why Invest in Stocks?
Stocks historically average 7-10% annual returns versus 1-2% bank interest, though with volatility.
Long-term holding bets on company success; trading seeks quick gains from price swings.
Advice: Start with understood companies, diversify to avoid single-stock risk.
