Understanding the Stock Market

The stock market is a complex system that plays a crucial role in the economy. This article aims to demystify the stock market for new investors.

How the Stock Market Works

The stock market allows companies to raise capital by selling shares to investors. In return, investors gain ownership in the company and can benefit from its growth.

“Investing in stocks is a way to participate in the economy.”

Types of Stocks

There are various types of stocks, including common and preferred stocks. Understanding the differences can help investors make informed choices.