When a business starts up, it often needs money to buy initial stock etc and get going. Especially if it's a manufacturing business - it's got to be able to actually produce something and sell it before it can even start making any money. The usual way for a small business is to go to a bank for a loan.
The other way is to turn itself into a company and sell shares in the company. It gets money from the people who have bought shares, and in return they each own part of the company - they have a share in it and that explains the name "shares" - and expect something in return for the money they put in. So if the company makes money the shareholders will expect a dividend. Big companies usually pay twice a year, like interest on a savings account, but unlike interest there's no guarantee what the dividend will be. If the company does badly, it might not be able to afford to pay a dividend at all. That's the risk you take if you buy shares.
The stock market exists on top of this. It enables shares in companies big enough to be registered on the stock market to be bought and sold. The company gets nothing out of this, but how well it is doing affects the price of the shares so it's possible to buy shares and then sell them again at a profit. This is what investing in shares is mainly about. If the company is doing well and paying good dividends, that makes the shares more valuable.
Now say a big company wants to take over another one but needs to raise money to buy it. It has the same choices - get a bank loan, or make an issue of more shares and hope people will buy them. If it has a good reputation as a solid investment, people will. Issuing shares is safer because if everything goes pear-shaped, it can avoid paying dividends, while a bank will want to be paid interest at the agreed rate.
That's the short short version but I hope it gives the general idea.
Good question! You usually know the answer to this if you are in your position. You spot a cheap source and know where to find the buyers.
Do you know that you can sell these things? At what price? How many?
This should be your basic business plan. Without a plan you have no business.
Why should someone in this business tell you (a competitor) help you with your business?
1. You are too young to buy stock for such a business - you cannot legally enter into a contract to purchase goods.
2. Shares is too complex for a quick answer. Why not read the Wikipedia article about them, or anything similar.
At your age, you cannot individually establish yerms of credit to stock merchandise
I want to start a business, selling game time/game codes but where do i get those codes cheaper than the usual price.
Can some also explain to me very quickly what are shares.
I'm only 15 and I unfortunately didn't pick business as my subject.
