Stocks, also known as equities, are shares of ownership that entitle the holder to a part of a
company's assets and earnings. The stock market is where these shares are bought and sold.
There are 60 major stock exchanges around the world and 16 of them each have a market
capitalization of over $1 trillion. Both large players like banks or hedge funds and small investors
participate in this market. The stock market operates on a system of supply and demand and
has opportunities for long term investors and for day traders.
Common stocks are securities that represent ownership in a company — buying these you
become entitled to a share in a company's profits in the form of dividends. If you choose the
right stock, you can make considerable gains.