You have probably heard the terms ‘share dealing’ or ‘stock trading’, but what do these really mean? We’re here to teach you the stock market basics, to question what you thought you knew about stock market trading and what this could mean for you. What are stocks? Ultimately, stocks are shares issued by corporations. Owning stocks in a company gives you the right to vote in shareholder meetings, offering you some indirect power, particularly if the company buys another company. You are entitled to receive dividends and are free to sell your shares elsewhere. It is the second (profits) that is typically of most interest, as this represents the foundation of a stock’s value. The more shares you own the larger proportion of the profits you get back. Some companies may not pay out dividends but instead will reinvest profits back into the expansion of the company, however these retained earnings are then reflected in the value of the stock.