Stocks are a amazing way to invest. But what is a stock and how does it work. A stock is a asset that goes up or down in value depending on 2 main factors. The company's profits (main factor) and demand. If a company made $100k last year and this year $150k the stock will increase. If the company made 99k though you would still lose money in the stock. Do not panic if a stock crashes because the stock market goes up and down. In fact if the stock crashed then you should buy more as it has a high chance of going up but do not invest in junk companies or startups (some exceptions).