From the course: Financial Basics Everyone Should Know

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The stock market

The stock market

From the course: Financial Basics Everyone Should Know

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The stock market

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- [Instructor] Have you ever thought about investing in the stock market? This question is a common one for most people unsure how to save their money. The stock market is a system that enables companies to sell partial ownership in themselves to people, to investors, in exchange for cash. Investors get a way to earn a return on their cash that they want to invest by owning a piece of a company. And companies get cash from investors that help to grow their business more. So it's a win-win for both sides. Common stocks, which are usually just called stocks, are critical to successful retirement, because they have, by far, the highest rate of return compared with any other option out there over the last century. Common stock is a certificate that indicates ownership in part of a corporation. When you're learning about stock, you should know that the word stock can be used in different ways. Stock is like a singular version of shares. Shares are pieces of the company. If the company has…

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