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Infographic: The Stock Market Explained
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Ian D.
Certified Credit Union Financial Counselor
Posted June 19, 2018
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Why do people invest in the stock market?
People invest money in buying stocks with the hope that when they decide to sell the stock, it will be worth more money than they spent buying it. Companies can use the invested money to upgrade their services, hire new employees, expand their reach, or develop new products. This is done with the expectation that the value of the company will increase and so will the stock.
How do people invest?
People invest in a variety of ways. One of the most common is through 401k retirement accounts. This retirement plan invests money people are putting aside for retirement in the stock market with the hope that stock values will increase over time; therefore giving a person more money for their retirement. Some people also purchase stock through mobile investing apps and websites. Still, others work with investment companies who have portfolio managers that can advise consumers on when to buy and sell stock and which ones to invest in.
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