In an article published in the journal of The Reading Teacher, researchers explained ways that parents (as well as teachers) can make the most out of story time based on the research about what helps children learn from reading aloud.
Reading aloud gets children actively involved in thinking and talking about the book with the parent. One strategy is to ask a question and give the child time to answer. Another is to repeat what they say and extend it by adding a few words of your own. Another step is to prompt the child to talk about the book in their own words by asking, for example, “What do you think this child should do next?” Parents may also ask the child how the book relates to their own experiences.
Lane, H. B. & Wright, T. L. (2007). Maximizing the effectiveness of reading aloud. The Reading Teacher, 60, 668-675.