What are Stocks?

Stocks are ownership in a company and are represented in shares. They are the most effective way for the average person to build wealth over their lifetime. Similarly, for corporations, stock are the most effective way for to raise money.

Why Stocks Are So Important? For the every day person: The majority of American’s are wage earners. This means that the only way for the majority of people to accelerate their wealth is through investing. Because stocks are accessible and liquid (the opposite of investing in real estate, for example) it is the only way for investors to grow their wealth over time.

For companies, stocks are one of the most effective ways for a company to raise cash and cash is one of the most effective ways to grow a company. Stocks are probably the most basic element of the financial system, so watch this video and stay informed!