Answer Kids: 'What is the Stock Market?' | NatWest Rooster Money (2024)
The stock market is a place where people buy and sell shares, or little parts of companies. Companies offer these shares for sale so they can get money to improve their businesses.
Investing in shares can be a good way to make money. Shares can go up in value, so when they’re sold again, you get more money back than you spent. Just by owning shares, you sometimes receive a payment too; this is called a dividend.
What are stocks and what are shares?
‘Shares’ are small pieces of companies that people can buy. Once you buy a share you own a small part of a company.
‘Stocks’ is a more general word, and is used when describing multiple shares in multiple companies.
The price of a share can vary; the main thing that affects it is whether it’s popular or not. If lots of buyers want a certain company’s shares because the company is doing well, or they think it will do well in the future, the price goes up. If buyers don’t want a certain company’s shares, maybe because lots of people think the company is doing badly, or will do badly, the share price will go down.
Who buys and sells shares?
Stockbrokers are the people who buy and sell stocks, and advise other people on how to manage their stocks in the best way to make more money. Their basic advice is:
If they think the company will do well – buy
If they think the company will stay the same – keep it
If they think the company will do badly -sell
Where does this all happen?
The world’s biggest stock exchange is The New York Stock Exchange, which is in New York City. Other big stock exchanges are based in Shanghai, Tokyo, Hong Kong, Amsterdam and London. However, buying and selling stocks can take place almost anywhere in the world, because a lot of activity takes place online.
The stock market is a place where people buy and sell shares, or little parts of companies. Companies offer these shares for sale so they can get money to improve their businesses. Investing in shares can be a good way to make money.
The stock market is where investors buy and sell shares of companies. It's a set of exchanges where companies issue shares and other securities for trading. It also includes over-the-counter (OTC) marketplaces where investors trade securities directly with each other (rather than through an exchange).
The stock market is where shares of companies and other financial instruments are bought and sold. It's a network of all-stock trading where investors and traders buy and sell stocks. These trades determine stock prices, reflecting the company's perceived value and market conditions.
A stock exchange, or stock market, is a system for buying and selling securities, or stocks and bonds. A stock is a share in the ownership of a company. A bond is an agreement to lend money to a company for a certain amount of time. Companies sell securities to people to get the money they need to grow.
The stock market refers to the collection of stocks that can be bought and sold by the general public on a variety of different exchanges. Where does stock come from? Public companies issue stock so that they can fund their businesses. Investors who think the business will prosper in the future buy those stock issues.
Start by teaching them the basics of risk versus reward, stocks and bonds, and profits and losses. If you own stocks, explain why you chose to invest in those companies and consider including your child in keeping an eye on the stock and company news.
For example, if an investor buys shares of a company's stock at $10 a share and the price of the stock subsequently rises to $15 a share, the investor can then realize a 50% profit on their investment by selling their shares.
Stock is a type of investment that is done by individuals and businesses when they invest their money in business ventures in order to get a higher return on their investment.
Stock Market. A general term used to describe all transactions involving the buying and selling of stock shares issued by a company. Stock. A share of ownership in the assets and earnings of a business.
What is Stock Market. Definition: It is a place where shares of pubic listed companies are traded. The primary market is where companies float shares to the general public in an initial public offering (IPO) to raise capital.
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