What is the Stock Market?
The stock market is a collection of markets where stocks (shares of ownership in businesses) are bought and sold. Think of it as a bustling marketplace where investors from all around the world gather to make trades.
Key Terms
- Stock: A share in the ownership of a company, representing a claim on the company's assets and earnings.
- Shareholder: An individual or entity that owns shares in a company.
- Index: A measurement of the value of a section of the stock market, such as the S&P 500 or Dow Jones Industrial Average.
Why Invest in Stocks?
Investing in stocks can be a great way to build wealth over time. Stocks have historically provided returns in excess of other asset classes such as bonds or savings accounts.
Getting Started
Want to start investing but not sure where to begin? Here are a few steps:
- Open a brokerage account
- Set investment goals
- Research potential investments
- Start with low-risk options
- Monitor and adjust your portfolio
Learn More and Dive Deeper!
Explore these related guides: