What Is The Stock Market
Hello everyone, this is Sean from Value Investing College. Today, I want to share with you what is the stock market and how can you really benefit from it. Now, when a lot of people heard the word stocks, the first thing a lot of people think about is the prices going up or the prices going down and this makes a lot of people very intimidated. What does it really mean? Okay, just think about it for a moment. How did the stock market really come about? It’s actually very simple.
Many years ago, businesses who are making money from the real market, what they do is they want to solicit more money. They want people to pump in money into their business. So, how did they do that? Well obviously, when you pump money into a business, you can either borrow from the banks or what you can do is to ask more people to become your shareholders. This is where do word shares come about that I’m going to share my businesses with you.
So, if you pump money into my business and you become a shareholder, I’m sending you shares and that’s where the stock market was created. And the cool thing about the stock market is, inside the stock market, there are many, many businesses that sell their shares and what it means is this. Think about it this way. Let’s say you are in your school right now and maybe that’s in your university or in your, let’s say, polytechnic and you have all your classmates wanting to set up their businesses. And you know, if you want to set up a business, you may need a lot of money, a few hundred thousand, maybe even millions and what the share market does is without spending hundreds of thousands or millions, we can just spend maybe $100, $200 and we can participate in different types of businesses and just imagine this. You just need one of them, just one of them becomes successful and they become multimillionaire or multibillionaire. Well, you can ride along with them so that’s the cool thing about the stock market.
You don’t have to spend a lot of money. You can spend small amount of money and you can buy a piece of the business and that’s what the shares is all about. So, this is something you can consider today if you want to start investing because just with $50, $100, $200, you can own some of the businesses in Singapore or around the world. And this is Sean Seah from Value Investing College. I hope this has helped you in your investment journey.