The stock market is a place where people buy and sell shares (also called stocks) of companies.
- When you buy a stock, you own a small piece (a “share”) of that company.
- The stock market helps companies raise money to grow, and it allows investors to profit from that growth.
Think of it like a marketplace — but instead of goods like clothes or food, people trade pieces of companies.
Other Ways to Earn
Trading: Buying and selling frequently to profit from short-term price changes.
Index funds / ETFs: Investing in a basket of many companies to earn average market returns.
Options trading: More complex strategies that can amplify gains (but also risk).
💰 How You Can Earn from the Stock Market
There are two main ways to make money:
1. Capital Appreciation (Price Increase)
You buy a stock at one price and sell it later at a higher price.
2. Dividends
Some companies share a portion of their profits with shareholders — this payment is called a dividend.
Dividends are usually paid quarterly (every 3 months).
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