The stock market is a collection of markets where stocks (shares of ownership in businesses) are bought and sold. The purpose of the stock market is to provide a means for business owners to raise money by selling shares of their company, and for investors to purchase those shares in hope of making a profit. When you buy a share of stock, you become a part owner of that company. As the company grows and makes money, your share will also increase in value. Conversely, if the company fails, your share may lose all its value. For these reasons, it’s important to do your research before investing in the stock market.
