The core idea
A share is a small ownership interest in a business. Shareholders may benefit when the business grows, but they can also lose money.
A little more context
A dividend distributes some company cash to shareholders. A board can reduce or stop it, and many growing companies pay none.
What to remember
Common shareholders are paid after creditors in liquidation. There may be nothing left for them.
Pause and reflect: how would you explain this idea to someone who has never invested?