ELI5: Explain Like I'm 5

Participation (ownership)

Participation or ownership is when you have something that is entirely yours, and you can make decisions about it. For example, when you have a toy that belongs only to you, you can decide what to do with it. You can play with it, share it with your friends, or keep it safe.

When it comes to things like companies or businesses, people can buy what is called a share. A share is a little piece of the company. You can buy one or many, depending on how much you want to own. When you buy a share, you become a part-owner of the company. This means you get a say in how the company is run and make some of the decisions about it.

If the company does well and makes a lot of money, the value of your share goes up, and you can sell it for a profit. If the company does not do well, the value of your share could go down, and you may lose some of your money.

In summary, participation or ownership is like having a toy that is only yours and getting to decide what happens with it. In the case of companies, it means you own a part of the company, can make decisions about it, and potentially make money from it.