Stock market facts for kids
A stock market is a place where people and computers buy and sell small pieces of companies. These pieces are called shares. It's like a big marketplace for company ownership!
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Shares are tiny parts of a company. When you buy a share, you own a small piece of that company. People, other companies, and even special groups called mutual funds can buy shares.
The price of a share can change a lot. It mostly depends on how many people want to buy it versus how many people want to sell it.
- If many people want to buy a share, its price usually goes up.
- If more people want to sell a share than buy it, its price often goes down.
Who are Stockbrokers?
Some people buy and sell shares through a stockbroker. A stockbroker is a person who helps their customers trade stocks. They can buy or sell shares for you.
Stockbrokers also give advice. They help customers decide which shares to buy, keep, or sell. Their advice comes from public information about the companies.
Stockbroker Advice
Stockbrokers give different kinds of advice to their clients:
- BUY: This means they think the stock will do well, so you should buy it.
- HOLD: This means they think the stock will stay about the same, so you should keep it.
- SELL: This means they think the stock might go down, so you should sell it.
Big Stock Markets Around the World
There are many important stock markets across the globe. Here are a few famous ones:
- NYSE (New York Stock Exchange) in the USA.
- NASDAQ (a stock market mainly for technology companies) in the USA.
- London Stock Exchange in the UK.
How Trading Has Changed
Trading shares online has become very popular. You can now buy and sell stocks from your computer or phone. Usually, there is a small fee or commission each time you make a trade.
Images for kids
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The offices of Bursa Malaysia, Malaysia's national stock exchange.
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A 17th-century picture of the Amsterdam Stock Exchange, one of the world's first stock exchanges.
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Courtyard of the Amsterdam Stock Exchange by Emanuel de Witte, 1653.
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The Bombay Stock Exchange in India, Asia's first stock exchange.
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The New York Stock Exchange building.
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The London Stock Exchange building.
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NASDAQ in Times Square, New York City.
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A chart showing stock market trends over many years.
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Another chart showing how stock prices relate to company earnings over time.
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See also
In Spanish: Mercado de valores para niños
