A stock is a kind of financial asset.
So, a stock is often seen as a sort of financial instrument.
The stock price is measured in terms of how much money a company makes.
If a company sells a stock, it earns a return on its investment.
But what happens when the stock price drops?
When the stock drops, it loses money.
And when the price rises, it makes money.
But as a stock price increases, there’s a corresponding rise in value.
A company can grow its stock price by buying new shares.
But it can also increase its price by selling shares that have lost value.
If the company sells some of those shares, it can get more money.
If it sells the rest, it may lose money.
When you zoom in, you can see the process of how stock prices change.