Stock Market

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The stock market is similar to a farmers’ market. It is a group of buyers and sellers that come together to trade. Instead of buying goods, investors can buy and sell stocks.

The purpose of the stock market is to provide investors an easy way to connect with companies that are attempting to sell their stock. It also helps investors buy or sell their shares quickly. This can be crucial if an investor is attempting to purchase a stock before it increases in value.

Why would companies want to sell their stock on a stock market? Remember, when an investor buys a stock, they are trading cash for partial ownership of a company. A company will sometimes sell their shares in order to receive cash, which they can use to fund new projects or grow faster.

The stock market is often characterized as a bull or bear market. A bull market would indicate that stocks are on the rise and a majority of the stock market is increasing in value, while a bear market means the opposite.

Since the stock market handles sensitive information for tens of millions of investors, it is regulated by the Securities and Exchange Commission (SEC for short). The SEC is a government agency that enforces government regulations in the stock market to ensure that everyone is doing the right thing. Essentially, the SEC are the police of the stock market. They punish those who are doing anything illegal and make sure the stock market is fair.

In the past, the stock market was facilitated in physical locations, where an investor would have to go in person to purchase the stock of their choice. Today, things are a little different. Everything is digital. Similar to ordering food through an app, an investor can buy stock online in only a few seconds.

The physical locations are called stock exchanges and it will be the next Bite we will be diving into.

Source: Investopedia | Stock Market

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Disclosure: This is not an offer, solicitation of an offer, or advice to buy or sell securities, or open a brokerage account in any jurisdiction where Alpaca is not registered (Alpaca is registered only in the United States). All investments are subject to investment risks, including possible loss of the principal amount invested.
Disclosure: Alpaca does not make recommendations with regard to fractional share trading, whether to use fractional shares at all, or whether to invest in any specific security. A security's eligibility on the list of fractional shares available for trading is not an endorsement of any of the securities, nor is it intended to convey that such stocks have low risk. Fractional share transactions are executed either on principal or riskless principal basis, and can only be bought or sold with market orders during market orders.
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This is not an offer, solicitation of an offer, or advice to buy or sell securities, or open a brokerage account in any jurisdiction where Alpaca is not registered (Alpaca is registered only in the United States).

View Alpaca's disclosures at: https://alpaca.markets/disclosures

Alpaca does not make recommendations with regard to fractional share trading, whether to use fractional shares at all, or whether to invest in any specific security. A security’s eligibility on the list of fractional shares available for trading is not an endorsement of any of the securities, nor is it intended to convey that such stocks have low risk. Fractional share transactions are executed either on a principal or riskless principal basis, and can only be bought or sold with market orders during normal market hours.

The content on this website is for illustrative and informational purposes only and any historical returns, expected returns or projections are hypothetical in nature. Investing involves risk & investments may lose value, including the loss of principal. Past performance does not guarantee future returns or results. Before investing, carefully consider your investment objectives, time horizon, and overall risk tolerance as well as the information stated in the product offering prospectuses.