24. Swabeng Discussion: Stock Market (The Bare Basics)

Now that we have already discussed Mutual Funds and Unit Investment rust Funds, I guess its time to discuss some more ways to earn money passively.


That is through the Stock Market.


Now what is the Stock Market Exactly?


The Stock Market is referred to as a place where shares of Public Listed Companies are Traded (Buy or/and Sell).


To make it simple, lets compare the Stock Market with a Wet Market (The one that our Moms usually go to buy/sell fresh produce).


When you go to a wet market, products there are group into sections like Meat, Fish, Vegetables, Poultry, etc.


In a market, not all prices are the same. Some are more pricey than others but the cost may increase or decrease depending on the Supply and Demand.


This is the same with The Stock Market. Instead of buying produce, you're buying shares of stocks. When you buy shares of stock, that makes you also a part owner of the company.


Prices of shares increase or decrease depending on the number of buyers and sellers for the Stock.


How you earn through the Stock Market? There are two ways. First is the price appreciation and Second through Dividends. Both of them will be discussed on the next post.


Till then.