Stock Market Basics
The stock market can seem like a complex and intimidating world, but understanding its fundamentals is crucial for anyone looking to build long-term wealth. This comprehensive guide breaks down stock market basics in simple terms, providing you with the knowledge to start your investing journey with confidence. What is the Stock Market? The stock market is a collection of exchanges where shares of publicly traded companies are bought and sold. When you buy a company’s stock, you’re purchasing a small piece of ownership in that business. The major U.S. exchanges include: New York Stock Exchange (NYSE): The world’s largest stock exchange NASDAQ: Known for technology companies like Apple and Google S&P 500: An index tracking 500 large U.S. companies Why Invest in Stocks? Wealth Building Potential Historically, stocks have provided higher returns than other investments like bonds or savings accounts. The S&P 500 has delivered approximately 10% average annual returns over the long…