We know trying new things could get intimidating and overwhelming and most of all, confusing - it compels us to just do nothing. But getting over the fear bit by bit does pay off. Before you know it, you’ve climbed a mountain, and everything else seems possible.
This can apply to the subject of the stock market. It can be so beneficial and yet — most of us don’t know where to start, so we give up on trying. That’s why we’ve explained some of the jargon in bite size explanations so that the topic is seen less as an underground niche and more of an opportunity to grow.
1. Stock: Stocks are like little pieces of a company that you can buy. It's similar to owning a small part of your favorite store or restaurant.
2. Share: When you buy a stock, you get a share. Think of it as having a slice of pizza. The more shares you have, the more of the company you own.
3. Stock Exchange: A stock exchange is a place where people buy and sell stocks. It's like a special market where you can trade your toys with your friends.
4. Bull Market: A bull market is when the stock prices are going up. It's like when your favorite sports team is winning, and everyone is happy and excited.
5. Bear Market: A bear market is when the stock prices are going down. It's like when your team is losing, and people feel a bit sad or worried.
6. Index: An index is like a scoreboard for the stock market. It shows how well all the stocks are doing together. It's like keeping track of the points in a game.
7. Dividend: Sometimes, when a company makes a lot of money, they share some of it with the people who own their stocks. It's like when your parents give you a treat or allowance for doing a good job.
8. Portfolio: A portfolio is like a collection of different stocks that someone owns. It's similar to having a folder with pictures of all the toys you have. Some people collect different stocks like you collect different toys.
These are simplified explanations, and the stock market can be more complex. But I hope this helps you understand some basic ideas about stocks and the stock market!