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A company can be divided into many tiny pieces called shares. When you own a share, you own a small part of that business. This makes you a shareholder. Owning stock gives you certain rights in the company. You might get a share of the company's earnings. You might also get voting power to help make decisions. Some shares even give you a claim to assets if the company closes.

B&O RR common stock
B&O RR common stock

There are different kinds of stock you can own. Common stock usually lets you vote on important company choices. Preferred stock is a bit different. It often does not have voting rights. However, it usually gives owners a priority to receive profit payments. These payments are called dividends. Some shares are even convertible. This means they can change from preferred stock into common stock later.

Stockbroker
Stockbroker

People have used shares for a very long time. During the Roman Republic, companies called publicani issued shares. These shares were called partes or particulae. In the year 1250, people in France traded shares of a milling company. In 1288, a Bishop in Sweden acquired a 12.5% interest in a copper mine. This was a documented stock transfer.

Stora Kopparberg 1288
Stora Kopparberg 1288

Modern stock history includes some very famous companies. The English East India Company received a charter in 1600. It had a monopoly on trade in the East Indies for 15 years. Later, in 1602, the Dutch East India Company did something new. It issued the first shares that people could trade on an exchange. This happened at the Amsterdam Stock Exchange. They traded millions of tons of cargo over many years.

Companies use stocks to help them grow and succeed. A private company might need more cash for new projects. They can sell shares to the public through an initial public offering, or IPO. This lets many people become part-owners. People can buy and sell these shares on a stock exchange. Large groups like mutual funds are often the biggest shareholders today. This system helps money flow to businesses that need it.

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File:Stora Kopparberg 1288.jpg
Stora Kopparberg 1288.jpg
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B&O RR common stock.jpg
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Stockbroker.jpg
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