The stock market has many aspects to it, but if they are learned you can understand the risks in taking part and how you can increase your chances of making more money. One major aspect of the stock market is stocks. A stock of a company is sold in units called shares and shares is the unit of ownership or equity. Another aspect is dividends and a dividend is a sum of money paid regularly by a company to its shareholders or investors in the company out of its profits. Some major world markets are the New York Stock Exchange(NYSE), Nasdaq and the Dow Jones Industrial Average. In these markets the companies have characters that identify itself differently depending on the world market these are called tickers. Such as the Nasdaq has 4 characters and The NYSE only has 3 characters in their tickers.
Now if you don’t want to put lots of money in the stock market there are other options such as a mutual fund. A mutual fund is where you and other investors bring your money together to buy shares in companies. There is a Portfolio manager who gathers all that money and puts it into buying shares and then he divides the money out to all investors in the mutual fund. A basic concept called supply and demand implements the market greatly. Supply and demand is a concept where demand is the quantity of something that buyers want and supply is how much the market has to offer. So relative to the stock market, supply and demand refer to how much investors desire of shares and how much the market has to offer for the right price. This affects the market because if the demand for the stock rises then the stock prices do the same. Therefore, if the demand is lower the supply decreases. Overall, investing in the stock market can be a risk if you aren't familiar with all the aspects of it. But, if you know the system in and out you have a good chance of making a profit out of the stock market.