The Stock Market: How to Invest
“Are all companies traded on the Stock Market?” asked Teyus.
“No” replied Grandma. “The only shares that can be bought and sold in the stock market are those that are “publicly traded”. That’s just a fancy way to say that anyone in the public can own shares of this company.”
“How many stock markets are there?”, asked Mira.
“Well”, said Grandma, “there are sixteen large stock markets in the world where most of the trade is done. The largest ones are in New York and then followed by London. This is why people are always talking about “Wall Street”. The stock markets in New York City called “New York Stock Exchange or NYSE” and “NASDAQ” make up 40% of the value of all the shares bought and sold in the world.”
The travelers were ready to invest in the stock market.
“I have 35 dollars in my piggy bank” said Teyus, eagerly looking forward to “make a killing” himself.
“That’s all! I have 400 in my bank account!” boasted Mira. “Grandma, how do we actually buy a share?”.
“Well, first you need to do your research. Then, since you are both under 18 years of age, you need to ask your parent to buy the shares for you, but it’s really very simple to do it once your parents agree.”
Grandma suggested they do the first steps towards investing in the market and the children loved the idea!