How Does the Stock Market/Exchange Work?

Elementary High School Middle/Junior High Uncategorized

Okay, let’s say you saved up your allowance or birthday money but you don’t want to leave it sitting in a piggy bank. What should you do? If you’re feeling risky, maybe instead of the traditional savings account you can grow your money using the stock exchange. But wait…what is the stock exchange?

What is the Stock Exchange?

When it comes to stocks most people will tell you:

“Investing [in stocks] is very risky”

Unfortunately, that is true. Investing in stocks is very risky. But honestly speaking, all investments carry some level of risk.

Luckily, the best way to offset the fear of risk is by understanding what you’re doing in the first place.

The video below does a wonderful job of illustrating how the stock market works not only for you (purchasing stocks) but also for businesses needing to raise capital.

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