Understanding the Stock Market

The stock market refers to how pieces of various companies are bought and sold.

Investing money means to make money from your money.

A share is a piece of the company that you can buy.

A corporation is any business that splits itself into different shares. In many ways, it has the same legal rights as a person.

The Dow Jones Industrial Average is a measure of how thirty large stocks are doing. It serves as a measure for the strength of the rest of the stock market.

A ?bull-market? means a time when the stock market is doing well and the values of shares are high, while a ?bear-market? is the opposite.

The stock market and the economy are connected; when one is doing well, so is the other.

Learn all this and more in Understanding the Stock Market.