Introduction: Where the Buying Happens
You’ve probably heard people say “the market’s up” or “stocks are crashing.” But where is this mysterious market? And how do people actually buy pieces of companies? Let’s break it down in plain and simple language.
What Is the Stock Market?
You don’t walk into the NYSE and hand someone cash. You use a broker or online platform, and they place your order for you. You: “Buy 10 shares of Apple.” Your broker: Sends that order to the exchange. The system: Finds someone selling those shares and makes the trade. Most of this happens in milliseconds.
What Does a Broker Do?
A broker is your connection to the stock market. They help you: There are two main types: Examples: Robinhood, Fidelity, Questrade, Wealthsimple
Market Cycles & Volatility (Why Prices Move So Much)
The market moves in cycles: And day-to-day, it is normal to see volatility (prices bouncing up and down).
Quiz
What's the purpose of a broker?
a) To guarantee your investments make money
b) To sell you stocks directly
c) To connect you to the market and execute trades
What's a stock exchange?
a) A bank that holds shares
b) A marketplace for buying ands selling stocks
c) A place where companies get loans
See the answers at the bottom
Summary and Key Takeaways
- The stock market is where shares of companies are bought and sold.
- Brokers and platforms help you access it.
- Prices move based on supply, demand, news, and emotion.
- Don’t fear volatility; focus on long-term growth.
1) What’s the purpose of a broker?Answers to the Quiz Questions
Answer: c) To connect you to the market and execute trades
2) What's a stock exchange?
Answer: b) A marketplace for buying and selling stocks
Additional resources
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