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How Does Stock Market Work

June 24th, 2011

how does stock market work

How The Stock Market Works

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Clear stock 1 pcs rubber band


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Clear stock 1 pcs rubber band


Clear stock 1 pcs rubber band


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how does stock market work?

well it has been brought to my attention that a few of my family memeber gained money from stock market..but they never really explained to me on how it works and what are the chances that a person will gain or lose money? wont it be just like gambling?

if you flip coins with a friends (gambling) then most likely after 100 flips you will both have the same amount of money you started with.

If you invest in stocks and mutual funds, the total amount of money increases over time as the shares that you own go up in value or pay you dividends (your share of profits).

The long-term annual gain of the the US Market is about 12%/year. This is much better than the 2.5% annual gain of a bank account. However, you have to be patient with The Stock Market as it goes up and down.

Go to your local bank and open a “Roth IRA” wih an “index fund” and put $25 a week into it from your pay check. If you are under $25 you will likely have a $million by age 65.

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