Finance Friday- what do you know about the Stock Market? 1

WHAT IS THE STOCK MARKET?

It is the aggregation of buyers and sellers (a loose network of economic transactions, not a physical facility or discrete entity) of stocks (also called shares), which represent ownership claims on businesses.

HOW DOES THE STOCK MARKET WORK?

A stock market is where investors meet to buy and sell shares. Markets used to be literal places—they were trading floors in New York, London, Tokyo and Frankfurt where prices for stocks were set in an ongoing live auction. Now most bids to buy and sell stocks are made electronically. You access these global electronic markets by placing an order through a broker. The cost for each trade typically runs from $5 to $10 per order, depending on your broker.

WHY YOU NEED TO INVEST IN STOCK MARKET.

One of the most compelling reasons for you to invest is the prospect of not having to work your entire life! Bottom line, there are only two ways to make money: by working and/or by having your assets work for you.

Photo source: dreamstime.com

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