How does the stock market work?
(Sounds naive, I know, but I don’t really understand it
)
Answer :
You divide a business into 1,000 pieces of ownership. Then you sell them as 1,000 shares. Each shareholder is part owner of the business even tho she doesn’t not show up for work or give orders. If the value of the business goes up, the shareholder can sell for more than she paid..
Posted: August 11th, 2010 under US Stock Market.
Tags: stock market work