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When you buy shares of a company, you become its part owner.

The company is engaged in some commercial activity for making profits.

A part of profits of the company may be retained in the company for future growth(expansion, modernization, etc.). The remaining profit may be distributed among the shareholders.

The distributable profits are distributed among the share holders as dividend in proportion to the number of shares held by them.

The value of shares may increase(appreciate) because of prospects of growing profits and dividends. One may book the profits through selling.

Share holders do not get any salary.

Hope, this makes the position clear.

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I am a little confused on how the whole private investing thing works. I know in public stocks you buy shares, depending on the company you may or may not make dividends, then while you have it its an asset that increases in value (if you're lucky), while the big bucks really come in when you sell the shares. How does private investing work. If you buy 25% of a company for 25k dollars, does that mean you can choose to take a salary or not, but basically until the company is sold you won't make anything. Or does it mean you get 25% of all profits in the company? I am confused. Thanks