Grade 7 Lesson 6: The #stockmarket
We may have all heard of the words #stock #market in various contexts. In this lesson, we will cover the basics of what the market means and what it does.
What? - The stock market is a place where people buy and sell #shares, or little parts of #companies. Companies offer these shares for sale so they can get #money to improve their #businesses. #Investing in shares can be a good way to make money. Shares can go up in value, so when they’re sold again, you get more money back than you spent. Just by owning shares, you sometimes receive a payment too; this is called a #dividend.
Stocks vs. Shares? - “Shares” are small pieces of companies that people can buy. Once you buy a share you own a small part of a company. “#Stocks” is a more general word, and is used when describing multiple shares in multiple companies.
Price? - The price of a share can vary; the main thing that affects it is whether it’s popular or not. If lots of buyers want a certain company’s shares because the company is doing well, or they think it will do well in the future, the #price goes up. If buyers don’t want a certain company’s shares, maybe because lots of people think the company is doing badly, or will do badly, the share price will go down.
Where? - The world’s biggest stock exchange is The #NewYorkStockExchange, which is in #NewYork City. Other big stock exchanges are based in #Shanghai, #Tokyo, #HongKong, #Amsterdam and #London. However, buying and selling stocks can take place almost anywhere in the world, because a lot of activity takes place online.
Basic advice? - While buying and selling of shares is a highly complex subject, below is some very basic advice on how to manage shares in the best way to make more money:
• If you think the company will do well – #buy their shares
• If you think the company will stay the same – #hold it i.e. neither buy not sell
• If you think the company will do badly – #sell
ayu ecosystem #kids #education #financialliteracy #finance