The Stock market is a place where people buy and sell shares of companies. It’s one way that companies raise money, and it gives investors a chance to make a profit if the value of a share goes up. A company’s shares are often traded on an exchange, such as the New York Stock Exchange or NASDAQ. A single share of a company represents part ownership, and shareholders may receive regular payments from the company, called dividends. Shareholders also vote on company issues and may have a say in how the company is run.
The price of a share changes frequently, as buyers and sellers continuously negotiate the best price for their shares. When demand for a particular stock is high, its price rises; when supply outweighs demand, its price falls. Investors can buy and sell shares individually, or they can invest in funds like mutual or exchange-traded funds (ETFs).
Most investors approach the market from a long-term perspective, building wealth slowly through a portfolio of investments that increases in value over time. Others seek to profit from short-term movements in the market. Regardless of their strategy, many investors seek the help of financial professionals to develop investment goals and select stocks. They often compare the services offered by brokers based on costs, investment selection, research tools and customer support. They may also choose to use a robo-advisor to automatically manage their investments.
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