The stock market is actually a bunch of markets (Dow Jones, NASDAQ, London Exchange) where companies and investors meet. There are around 60 of them in the world. Companies use them to raise money through investors, who then make money when their investments increase their value. Investing in the stock market can be a great way to pay for things like a car, retirement or that private island off the Florida coast you’ve always had your eye on.
What does it mean to buy stock?
Buying a share, or a portion of a share (i.e. a fractional share) of a company’s stock means you’re purchasing a small piece of that company. As the value of the company grows (or shrinks) over time, so too does your investment. Stocks are riskier than some other investments, but also have the potential to reap higher rewards.