What Is the Stock Market? A Beginner’s Guide

The stock market is one of the most powerful tools to grow wealth over time. For beginners, it may look confusing, but once you understand the basics, it becomes simple and practical.

What Is the Stock Market?

The stock market is a place where shares of companies are bought and sold. When you buy a share, you become a small owner of that company.

How Do People Make Money?

People earn money in the stock market mainly in two ways:

• Buying shares at a lower price and selling at a higher price
• Receiving dividends from profitable companies

Is the Stock Market Risky?

Yes, the stock market involves risk. Prices move up and down every day. However, long-term investing with proper knowledge reduces risk significantly.

Always invest money that you don’t need immediately and keep learning before taking big decisions.