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How the Stock Market works

Source: https://www.investopedia.com/articles/investing/082614/how-stock-market-works.asp


How Does the Stock Market Work?

If the thought of investing in the stock market scares you, you are not alone. College students across the country with very limited experience in stock investing are either terrified by horror stories of the average investor losing 50% of their portfolio value or are beguiled by "hot tips" that bear the promise of huge rewards but seldom pay off.


It is not surprising, then, that the pendulum of investment sentiment is said to swing between fear and greed. But does this match the reality? Investing in the stock market carries risk, but when approached in a disciplined manner, it is one of the most efficient ways to build up one's net worth.


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