What is a stock? What does it mean when we say there is risk and reward in the stock market? Why do people invest their money in the stock market?

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Presentation transcript:

What is a stock? What does it mean when we say there is risk and reward in the stock market? Why do people invest their money in the stock market?

Have you ever wished that you could own a company?

A STOCK represents owning a piece or a share of a company

People buy and sell stock on the STOCK MARKET. This is called TRADING.

If you buy stock in a company that doesn’t perform well – you may lose money!

If you buy stock in a company that does well, you will make a profit.

What is a stock? What does it mean when we say there is risk and reward in the stock market? Why do people invest their money in the stock market?