A "stock" is a slice of ownership in a company. 🍕
Stocks are also known as "shares", or "equity".
Stocks are one of the best investments for building long-term wealth, with an average annual return of 10%! 💰
(This figure is from the S&P 500 Index)
By purchasing a company's stock, you're betting that the company will succeed.
Because you own a small piece of the company, you'll get the chance to grow alongside the companies you invest in 🚀
A company's stock price is closely related to the company's performance ♥️
But it can also change based on overall market conditions, as well as how other investors feel about the company.
Because of the ever-changing market, stock prices can go up and down on a daily basis -- sometimes by a lot! 👀
Always remember: investing is a long game that takes years or even decades.
But by being patient and making smart investments, you can potentially make significant money in the long term 🚀
Next, we'll talk more about how to make money from stocks, picking stocks, and other important concepts to help you invest like a pro 🧠
But first, let's test your knowledge of stocks!
