A Guide to the Stock Market for Kids!



We often hear people talk of the stock market and although it might sound a little confusing at first, it can actually be very interesting to learn about. Firstly, what is a stock? Sometimes businesses allow people to buy a small part of the company. Each of these small parts are called stocks, or shares. When the company makes a profit (which means extra money after covering all of their expenses), all of the stockholders share the profit.

The stock market is essentially a place where people can buy and sell stock from many different companies! Think of it like a fruit and vegetable market. There are many different stalls, each selling their produce at different prices. Walking around the market are many buyers who try to find the best prices. The stock market works somewhat similarly. However, anyone who has bought a stock can then go on to sell it. For example, imagine that someone buys one stock for $1 and the value of the stock rises to $5. That person can then sell their stock to another person. So for a stock that was originally worth just a dollar, the original buyer has made an extra four dollars. Buyers and sellers use many tools and charts to monitor the movements of the stock market on a regular basis to help them figure out when to buy or sell. In this way, they trade stocks in large quantities, so that instead of only making four dollars, they can make thousands of dollars or more.

Check out some of the links below to learn more about the stock market:

Stock Market Lessons and Activities for Teachers:

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