Explain how the stock market operates, and list the distinctions between the different types of stock markets

Business

1 answer:

nasty-shy [4]2 years ago

4 0

Answer:

When you invest in the stock market your are buying a small piece of a company. Let's say you think that elon musk will evolve tesla's and tesla will be the largest car brand around the world. Then you would want to buy a piece of tesla so that you can make money as the company grows.

Why would you want to invest in the stock market?

In this modern day companies are growing more than ever and will continue to as long as companies and businesses are around, and this is how you can make money in the stock market. Back in the day stocks like netflix, amazon and apple were as low as $5 a share and this was when the companies weren't as famous. As these industries and companies started to grow, you can see the growth of the stock price over the course of time. If you bought multiple shares of these stocks back when it was only $5 for ONE share, you would have a lot of money just made in the stock market.

The stock market goes up and down due to supply and demand. Prices go up when there are more buyers than sellers and will go down if there are more sellers than buyers.

I don't know if this answers your question completely but this is just a basic explanation.

Explanation:

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