What is the stock market? How does it work?
According to Investopedia.com… “The stock market refers to the collection of markets and exchanges where the issuing and trading of equities or stocks of publicly held companies, bonds, and other classes of securities take place. This trade is either through formal exchanges or over-the-counter (OTC) marketplaces.”
“Also known as the equity market, the stock market is one of the most vital components of a free-market economy. It provides companies with access to capital in exchange for giving investors a slice of ownership.”
The stock market plays an essential role in the global economy, creating a financial mecca of investing and making money from the companies that run the world. For most people, this is basically the entire extent of their knowledge about the stock market.
Even if we read a lot of definitions about the stock market, it really takes some effort to fully grasp what it is and if we can’t really fully understand it, why should we put our money on it right? As they say, never invest in something you do not understand.
Let me share you a nice video that can make you understand the stock market works and it is done in an awesome way that will definitely help you finally understand what seems to be a complex concept.
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(Randell Tiongson, RFP is an advocate of Life & Personal Finance. With nearly 30 years of experience in the Financial Service Industry – Banking, Mutual Funds, Insurance and Financial Planning, and Management Consultancy – he has become one of today’s most respected personal finance coaches in the country. Check out his website for more financial advice www.randelltiongson.com)