A Primer on Stock Investing If we want to achieve financial freedom, we need investment vehicles that will take us there. Not all investment vehicles, however, are created equal. Different investment vehicles run at different speeds. On this post, we’ll talk about the fast cars of investing: the stock market. What is a stock market? A stock market, aka equity market, is a market where shares of publicly held companies are issued and traded. Why do companies offer stocks to the public? Simply to raise capital by selling part of their company to interested investors, be they individuals or institutions. Every day, bajillions’ worth of company shares are being traded (bought and sold), creating wealth – or wiping them out — for participating institutions and individual investors. Examples of stock markets are the New York Stock Exchange (NYSE), the largest in the world, NASDAQ, which is also in New York and the second largest stock exchange in the world. Why invest in the stock market?
Because stock investing is a bold and aggressive stance in building wealth. Nowadays, it’s not enough that we work hard for money; we need our money to work hard for us, as well.