The big ideaA stock is a tiny piece of a business. Owners share what it earns.
How it works
Mia cut her stand into ten equal pieces, like slices of a pizza, but in her notebook.
Mia kept four pieces. Sam took three, Leo took two and Ana took one, so every piece had an owner.
Owning a piece means owning a tiny part of the stand. That is what a stock is: a tiny piece of a business.
The owners share what the stand earns: two coins a piece in a sunny week, and one coin a piece in a rainy week.
How many pieces each friend owns.What the whole stand earned, to share between ten pieces.
Example 1: Ten pieces, every one owned
Mia kept 4, Sam took 3, Leo took 2 and Ana took 1.
4 + 3 + 2 + 1 = 10.
All ten pieces have an owner.
Example 2: A sunny week
The stand earned 20 coins, shared by 10 pieces, so each piece got 2 coins.
Sam owns 3 pieces, so Sam gets 2 + 2 + 2 = 6 coins.
Mia owns 4 pieces, so Mia gets 2 + 2 + 2 + 2 = 8 coins.
Example 3: A rainy week
The stand earned 10 coins, shared by 10 pieces, so each piece got 1 coin.
Mia owns 4 pieces, so she gets 4 coins.
Owners share the quiet weeks as well as the good weeks.
Example 4: The friends and Mia
Sam, Leo and Ana own 3 + 2 + 1 = 6 pieces together.
Mia owns 4 pieces.
Six is more than four, so the friends together own more than Mia.
Words to know
stock
A tiny piece of a business.
piece
One equal part of the stand.
owner
Someone who holds a piece.
share
The coins each piece gets when the stand earns.
Watch out
A stock is a piece of a business, not a pile of lemons or a kind of pizza. The pizza only shows the cutting.
The pieces are equal parts: here, ten equal pieces.
Owners share what is earned, and the share is smaller in a rainy week.
The whole business is all the pieces together, not one tiny piece.
Try it
A sunny week gives 2 coins a piece. Leo owns 2 pieces. How many coins does he get?
A rainy week earns 10 coins shared by 10 pieces. How much does one piece get?
What is a stock?
How many pieces do the four friends own in all?
Answers: 1. 4 · 2. 1 coin · 3. A tiny piece of a business · 4. 10
Try at homeAsk a grown-up what a company is, and who works at one you know. A stock is a tiny piece of a company.
For grown-upsUse a real pizza: cut it into equal slices and talk about whole and pieces. Ask what a company is and who works at one you know. This is a story about owning a piece, not advice to buy anything.
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