| Understanding the nature of the stock market, including | | | | Without the stock market, our companies become |
| its pros and cons, doesn't have to be confusing one. | | | | slower in their growth and might falter in the increasing |
| Many people fear that in order for them to know the | | | | competition in the US as well as against international |
| nature of the stock market, they have to understand a | | | | companies. |
| gamut of stock and marketing terms and all that jazz. | | | | Another reason for the existence of the stock market |
| On the other hand, some people saw behind the | | | | is that it also has role in personal financial planning. This |
| veneer of all these economic gibberish, and saw the | | | | is because many individuals buy stock shares as part |
| potentials of what they could get from investing in the | | | | of their personal financial strategies. More importantly, |
| stock market. | | | | most Americans have a stake in the stock market |
| In a nutshell | | | | because retirement programs invest in stocks. It has |
| Simply put, the stock market is the market to buy and | | | | shown that retirement programs earn a lot more by |
| sell stocks and shares. This is where company stock | | | | investing in common stocks than other options such as |
| gets traded. The term is also used to describe the | | | | saving the funds in banks. |
| totality of all stocks in one country. That is why we | | | | Of course, the stock market also has its downsides. |
| hear reporters talking that "the stock market was up | | | | Remember that the stock market is not a tool for |
| today" or that "the stock market went down after the | | | | instant success. True, there are cases of one getting |
| dollar fell to the euro." | | | | wealthy by investing in the market, but this involves |
| What are the pros and cons of the stock market? | | | | having shares in various company stocks, which |
| One of the reasons why we need the stock market is | | | | means a lot of research, time, and money. One also |
| because it is an important factor for the US economic | | | | gets rich when some stocks become "hotter" such as |
| system to operate. Through the stock market, US | | | | the "dot-com" bubble in the nineties, but when the initial |
| companies improve their financial viability and expand | | | | buzz around these stocks falter, the value of these |
| their operations by raising funds from selling stocks. | | | | stocks tend to crash. |