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Finance  » Stock Market
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What is the Stock Market?

By: J.P. Walker

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What is the Stock Market
The stock market is a great way to invest in companies of all sizes and types.

Basically, the word stock refers to supply. In the stock market world, stock is the amount of money that a company has raised from investors or people hoping to invest in a group and see a solid return.

If you invest in a promising company early on, you could double or triple your money. Talk about an investment!

Thus, the stock market is the practice of people around the word buying and selling stock. Though there are specific places associated with this business – Wall Street – there is no specific spot or central location for the stock market.

Instead, people can perform these transactions online or via the Internet.

If a company wants to expand, it is smart to issue and sell stock in the group. This can help a business expand so that it builds more factories and stores, hires more employees, and is able to create and market new products.

Selling stock to an international market is a great way to raise money without having to go into debt.

Not every business or company is allowed to sell stock on the stock market. If a business is owned by only one person or by a few people, stock can not be sold.

Only a corporation, which has a specialized legal status, can sell stock.

If you own stock, it means that you have a stake in the company: you own part of it. The number of shares you own dictates how much of the company you own.

If a company has 1,000 shares, and you buy 100, then you own 10% of the company.

Those who own stock are referred to as stockholders

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