Key idea
A share is a unit of ownership in a company. Buy one, and you genuinely own a fraction of that business, with the rights that come with it.
A share (or stock) is one unit of ownership in a company. If a company has divided itself into, say, a crore of shares and you own a hundred of them, you own one ten-thousandth of the entire business, its factories, its brand, its future profits, all of it.
What ownership entitles you to
A claim
on profits (dividends)
A stake
that grows if the business does
A vote
on certain company matters
As a shareholder you have a claim on the company's profits (paid as dividends when declared), you benefit if the business grows and its share price rises, and you typically get voting rights on certain decisions. You are a part-owner, not a lender or a bystander.
The mindset shift
Thinking of a share as ownership, rather than a number on a screen, changes how you invest. Owners care about the business behind the share and hold for its growth. Gamblers care only about the price and trade on its wiggles. The first mindset is what this whole domain is quietly building toward.
When you buy a share, you buy a piece of a company. Everything sensible about investing follows from taking that ownership seriously.
Finished reading?
Marking this complete counts today, and your streak becomes day 1.