What is The Stock Market?
The stock market is basically a place where people can exchange stocks and money. If you want to buy or sell a stock then all you have to do is to simple open up an account with a brokerage and then place the order.
Normally when you buy and sell stuff you have to find the opposite party. If you want to sell your car you have to find a buyer. Well this is true with stocks, but luckily when you have a broker they will automatically match your trade with the opposite trade and because stocks are so liquid they will do it in seconds.
So, now you understand a little bit about what the stock market is and you know that the main reason to have it is to easily match buyers and sellers, but what is a stock?
Well a stock represents a portion or the ownership of a company. For example, if a company has 10 million shares of stock and you buy 100 you own 100/10,000,000 of the company. Or 1/100,000 of the company.
Of course with such a small amount of the ownership of the company you really don't have much say with what is going on and how the company should be ran. However there is another advantage of owning stock in a company.
Stock by itself is worth something. Since each share represents a portion of the company they are backed by the company itself. As long as the company is still around your stock should be worth something and as the company grows and prospers your stock should be worth more and more.
By getting into stock in strong companies that are likely to be around for a while and are likely to grow you are putting your money into something that is considered to be safe and will likely increase and build your wealth as time goes by.
Owning stock is a fantastic way of building your wealth. This is proven by the fact that the majority of millionaires by stock and hold onto them. If you have some money saved up and are looking to invest it the stock market is a terrific place to do that.
Normally when you buy and sell stuff you have to find the opposite party. If you want to sell your car you have to find a buyer. Well this is true with stocks, but luckily when you have a broker they will automatically match your trade with the opposite trade and because stocks are so liquid they will do it in seconds.
So, now you understand a little bit about what the stock market is and you know that the main reason to have it is to easily match buyers and sellers, but what is a stock?
Well a stock represents a portion or the ownership of a company. For example, if a company has 10 million shares of stock and you buy 100 you own 100/10,000,000 of the company. Or 1/100,000 of the company.
Of course with such a small amount of the ownership of the company you really don't have much say with what is going on and how the company should be ran. However there is another advantage of owning stock in a company.
Stock by itself is worth something. Since each share represents a portion of the company they are backed by the company itself. As long as the company is still around your stock should be worth something and as the company grows and prospers your stock should be worth more and more.
By getting into stock in strong companies that are likely to be around for a while and are likely to grow you are putting your money into something that is considered to be safe and will likely increase and build your wealth as time goes by.
Owning stock is a fantastic way of building your wealth. This is proven by the fact that the majority of millionaires by stock and hold onto them. If you have some money saved up and are looking to invest it the stock market is a terrific place to do that.
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