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What Exactly Is The Stock Market? By Giovani Saintiny Stock can be thought of as the supply of money made available by investors for a business's use. The stock market, itself, is where such supplies are negotiated. Companies are allowed to raise money, in this fashion, at the investor's risk. That being the case, an investor who holds stock is considered to hold partial ownership (a share) in that company--hence the term shareholder (or stockholder). Such moneys, raised by soliciting investors, are intended to help with growth projects such as developing products and services, hiring workers, obtaining industrial machinery, and so on. In cases where the company profits, the shareholder profits, too. In cases where the company looses money, the shareholder can loose up to the amount of money for which the stocks were bought. So risk is involved, but the rewards--when a shareholder's speculations are correct, can be quite a bit higher than the interest offered at banks. That's why so many people want to invest in the stock market.

Contributed by Giovani on March 5, 2009, at 9:52 AM UTC.

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This intel was contributed by Giovani Giovani

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