Market Observer

The stock market is where people buy and sell shares of publicly traded companies.

It's like a marketplace where investors can trade these shares. When you buy a share of a company, you become a partial owner of that company. The value of shares can go up or down based on various factors, such as company performance, market trends, or geopolitical and economic factors.

Investing is the act of committing money or capital to an endeavor with the expectation of obtaining additional income or profit.

Investing in the stock market can be a way to potentially grow your wealth over time, but it also comes with risks. It's important to do your research and understand what your investing in. Working with a Wealth Advisor can make this simple for you and your family!

Here are a few key terms to help you get started:

1. Stocks: Stocks represent ownership in a company. When you buy a stock, you become what is called a shareholder. Being a shareholder means you have a stake in the company's success.
2. Exchanges: Stocks are traded on stock exchanges, such as the New York Stock Exchange (NYSE) or NASDAQ. These exchanges provide a platform for buying and selling stocks.
3. Indexes: Indexes, like the S&P 500 or the Dow Jones Industrial Average, track the performance of a group of stocks. They give you an idea of how the overall market is doing.
4. Brokerage Accounts: To buy and sell stocks, you'll need a brokerage account. It's like a digital wallet where you (or your advisor) can deposit money and make trades.
5. Risk and Diversification: Investing in the stock market involves risk. It's wise to diversify your investments by spreading your money across different stocks and sectors to reduce risk.
6. Risk Tolerance: Everyone has a different comfort level with risk. It's essential to understand your risk tolerance before investing. Some stocks may be more volatile than others, so choose investments that align with your risk appetite.

We are just scratching the surface here, but by understanding the above information, we can continue to build our knowledge and dive deeper in the future. If you have any questions, don’t hesitate to reach out to the team here at Fairway!