What is a share? Explained for kids
A share (shares are also called stock) is a piece of a company. You own a part of it. In the book, the old lemonade stand is split into twenty cards. Whoever has a card owns one twentieth of it. Someone who owns a share is called a shareholder. That makes them a co-owner, but it doesn’t make them the boss. Not even close.
Good to know: we explain how things work in Germany, where the books are set. Rules and numbers can be different where you live.
How the guinea pigs explain it in Volume 6: Rocky Buys a Share
What is a share? Explained simply for kids
A share (shares are also called stock) is a part of a company. You own a piece of it. In the book, the old lemonade stand is divided into twenty cards. Whoever has one card owns one twentieth of the stand. Someone who owns a share is called a shareholder. That’s all it means, says the guinea pigs’ dictionary.
Does owning part of a company automatically make you the boss?
No. Rocky owns a piece, and he still can’t just rename the sign. Whoever has more shares usually has more votes, and on important matters all the shareholders vote. The managers run the company day to day. At Squeak & Squeeze that’s Rocky, but only as long as the others let him.
Why does a company get money when it sells new shares, but not when a shareholder sells theirs to someone else?
When the company sells new pieces of itself, it gets the money and gives up some ownership in return. But when you buy an existing share from someone, the money goes to the seller, not to the company. Christian draws the two directions to show it. When Mr. Berger sells his share, not a single cent goes to the greenhouse company.
Can kids buy shares?
Not on their own. They can only do it together with their parents. Before you invest any money, three questions from the book help: When will I need the money again? What will I do if the share price falls? Have I spread it out, or bet everything on one carrot? The book explains how shares work. It doesn’t tell you which ones to buy.
- A share is a piece of ownership in a company.
- Being an owner doesn’t make you the boss. Whoever owns more shares usually has more votes.
- When the company sells new shares, the company gets the money. When an existing share changes hands, the seller gets the money.
Aktie
share
In the books, every paragraph is in German with the English right below it. That way you pick up new words in both languages along the way.
Your turn: take the quiz
No account, no score, nothing gets saved. Just tap an answer.
1. Rocky sells 19 of the 20 cards. How much of the stand does he still own?
2. Mr. Berger sells his share to the kids. Who gets the money?
3. Can kids buy shares on their own?
Volume 6: Rocky Buys a Share
What a share is, where a share price comes from and why being a co-owner doesn’t make you the boss. For kids ages 10 and up, bilingual German and English, 92 pages, illustrated in full color throughout.
