The stock market is a place where people can buy and sell ownership in companies. When you own a part of a company, it’s called a “share” of stock. The price of a share of stock goes up and down depending on how well the company is doing and how many people want to buy or sell it.
People can make money from the stock market by buying shares of stock and then selling them later for a higher price. This is called “buying low and selling high.” For example, if you buy a share of stock for $10 and then sell it later for $20, you’ve made a profit of $10.
Some people also make money from the stock market by receiving dividends. When a company makes a profit, it may pay some of that profit to its shareholders in the form of a dividend. So if you own shares of stock in a company that pays dividends, you can make money from those dividends.
It’s important to remember that the stock market can be risky. The price of shares can go down as well as up, so it’s possible to lose money if you invest in the wrong companies or at the wrong time. It’s also important to do your research and understand the companies you’re investing in before you buy shares of their stock.
If you want to learn more about the stock market, you can talk to a financial advisor or do some research online. There are also books and websites that can help you learn more about how to invest in the stock market.