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How do i explain what the stock market is in simple terms?

2 Answers

6 votes

Hello There!

I tried to make this fairly simple and short

It's an online exchange for people to buy and sell investments. Investments are securities or stocks.

User Jonezy
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6 votes

The stock market is where the owners of companies, in an effort to get funding, would sell "shares" or part of the owning to the public. The more shares a person buys, the more "ownership" and right to make decisions for the company increases. Generally, the creator of the company would own the largest amount of shares. The stock market is used to sell all the other shares to the public, and how each company performs (profits vs. losses) would affect the prices of the company. The better off the company is (with high profits), the more expensive the stocks.

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User Alexander Baltasar
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