The Dutch East India Company unknowingly invented the world's first stock market, but today's version is much more complex. To understand how companies and investors use the market today, let's look at a hypothetical new coffee company. Before it launches, the company will advertise itself to big investors who may be interested in buying into the business. If they decide to invest, they will sponsor the company's initial public offering (IPO), which puts it on the official public market for all to buy stocks. Buying stocks gives those investors partial ownership of the business. Although it is difficult to track human confidence in the market, which can trigger economic booms or financial crises, most professionals advise reliable long-term investing over trying to make quick cash. It is important to note that everyday investors can buy stocks in many of the same ways as a large investor would.
No comments:
Post a Comment