Investments. Mutual funds. Shares. They are all key factors in one of the most important economical market in the world: the stock market. The stock market is one of the easiest and safest ways to make money but can also be financially destructive. It is a bit like gambling. People buy stocks in a company and in turn the company invests the money to fund their money-making gambits. If the company does well, you get a return on your stock and the stock value increases and you can choose to sell your stock. If the company’s venture does not do well, the stock you bought will lose value and you lose money. A venture capital is when you invest in a small startup company that you think will do well in the business world. You invest so they have money to make their product and then you make profit. This is one of the most dangerous but best way to make big money on the stock market.
But what if you can’t afford an expensive stock? Welcome to the world of mutual funds. A mutual fund is when a group of investors pool their money together and invest it in one or more stocks. It is professionally handled by a stockbroker usually and can be incredibly beneficial to each member. Supply and demand are key factors in the stock market. If supply is high and demand for a product is high, those are perfect conditions for a company. But, you want to buy before demand becomes high for a product because, the stock price increases if demand increases. A ticker symbol is a way to identify a company and what they trade. All in all, the stock market is a great place to invest money and make money. But, just like with gambling, you need to know when to stop and when to cut your losses.