IN THIS LESSON

In-Depth Explanation

What is Investing in the Stock Market?

Investing means using your money to buy shares of companies (stocks) or other financial assets, with the hope that their value will increase over time. Unlike saving money in a bank account, investing allows your money to potentially grow, but it also comes with some risk of loss.
Stock Market: The stock market is the platform where buying and selling of stocks happens. Companies list their shares on the market, and investors buy or sell them through stock exchanges (like the NYSE, NASDAQ, or London Stock Exchange).

How Does Investing Work?

Buy Low, Sell High: As an investor, your goal is to buy stocks at a low price and sell them later at a higher price. The difference between what you paid and what you sell for is your profit.
Dividends: Some stocks pay dividends, which are regular payments to shareholders, typically from the company’s profits. You can earn money from these payouts in addition to potential price increases.

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