Turn on TV news or open a newspaper, go online or listen to the radio, you may see some information about the stock market: “The Dow Jones index hit a record high”; “The Standard & Poor’s 500 index fell by 0.2%”; “The stock market against Washington The news responded. “The stock market seems to be everywhere in our daily lives, but what exactly is the stock market? Moreover, what are the stocks traded in this market? What does it mean for you, your employer or the economy of your country when the stock market is “a good day”?
Once we start thinking about what stocks are, the answers to these questions are not always obvious. For example, you may have heard that owning a stock means you become the owner of the company. But what does this mean? As an “owner,” can you reasonably walk into one of the offices and take your chair or table home? Can you hire and fire people? Of course, if you only own a small amount of shares, you only “own” a small portion of the company – but if you own a majority of the shares, can you take a chair or dismiss the employee?
In this tutorial, we will answer these and more questions, often delving into the core concepts. Once you master these concepts and understand what the stock market is, hope you can become a smarter, more informative, and smarter investor. Even if you don’t have your own brokerage account and invest with your own funds, you can reach the stock through a 401(k) retirement account, a pension plan, a college savings plan, a health savings plan or insurance. policy. Once a tool for the rich, the stock market has now become the tool of choice for many people to grow their wealth. The advancement of trading technology and low-cost stockbroking services on the Internet has opened up the stock market, so almost anyone today can own stocks with the click of a mouse.
However, before continuing, it is important to distinguish between two common uses of the stock market: investment and speculation. Investment means that you hand over funds for use in productive projects such as growth or expansion. Investing in factories, research and development, and new business ideas – these are all in the future, factories, research or startups will have more valuable expectations than the original investment. This means that you have reason to believe that the plant needs to be expanded, or that you have a broad understanding of what type of research is going on and what the benefits might be, or that you understand and believe in the business plan of the new business. In other words, investment is a rational decision to focus on the future. When you invest, your money will be used to add value.