The stock market is a market that opens daily at 9 am and closes at 18 pm tonight. Simply put, this market allows the purchase and sale of shares of domestic and foreign companies. The actions may refer to corporations, but also to commodities such as sugar or cocoa. The most famous market in France and the CAC40. It lists the 40 largest publicly traded French companies. The CAC40 index reflects health actions and industry.
Initially, a company needs capital to invest and move forward. She therefore requested money to people who could lend him and take part in a capital. So by buying shares, you become a shareholder in the company. It then participated more or less the capital of the company.
Then, if you keep your shares long enough, the company distributes annual dividends, which are a fraction of the profit of the company.
But the share price also increases the request of buyers. Indeed, you may be interested in a company and want to buy shares. The vendors will then put up for sale at a price and that price determines the increase or decrease of capital.
This is a good system, but has its limits. Indeed, one can get away from the reality of the company's business. Often we find that changes in stock prices follow the economic policy of the company and not completely pure creation of wealth. This is one of the pernicious effects of the capitalist system.
The fun - if you do make any successes on Wall Street and the Stock Market then I would love to hear from you!
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