Stocks are small pieces of ownership in companies that allow us to be a part of them. But what exactly are stocks and how do they fit into the financial landscape? Let’s unravel the mystery.

Imagine that a company has grown so large that it decides it is time to expand beyond its own pockets. Instead of relying solely on bank loans or debt, it decides to divide its ownership into “shares”. Each share is like a little piece of that company, and when you buy one, you become a shareholder, a financial partner in the company. So, if you’ve ever wondered how some people can say “Yes, I own a piece of that famous company!”, here’s your answer.

It’s kind of like the VIP list of the most liquid and popular companies on the Madrid Stock Exchange. It is the showcase where you can see how these companies are doing in the markets.

But wait, there’s more. Some companies, instead of keeping all their profits for themselves, share a portion with their shareholders. These payments, known as dividends, are like a “thanks for being a part of this!” in the form of cash. So, if you’re a fan of passive income, dividend-paying stocks could be like music to your ears.

And let’s not forget the stars of the U.S. market, mutual funds like the NASDAQ and the S&P 500. The NASDAQ is like the technology scene, full of companies that love innovation and growth. On the other hand, the S&P 500 is like a showcase of the top 500 companies in the US. They are the Messi and Ronaldo of the business world.

Now, what if you decide you want to sell your shares? That’s where liquidity comes into play. Stocks are liquid assets, meaning they can be bought and sold easily in the stock markets. So if you decide it’s time to get rid of your shares, you can do so fairly quickly.

In all of this, the shareholders are like the legal owners of the company, with some special rights. They can vote on important decisions, such as electing the company’s management at shareholders’ meetings. They also receive financial information to keep them up to date on how things are going. This only occurs in the stock asSpot Trading.

Finally, let’s mention the iconic place: Wall Street. This is the financial epicenter in New York, where the New York Stock Exchange(NYSE) is located. Imagine Wall Street as an investment mecca, where financial decisions are made that can affect the entire world.

So there you have it, a natural and simple look at the world of stocks, from the IBEX 35 to Wall Street, through dividends and shareholders. These small parts of companies are much more than just papers: they are windows into the economy and business growth.