How Do You Make Money From the Stock Market?

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The way to make money from the stock market is to invest in shares of stocks, mutual funds or others, and let that money build over time. Find out how to distribute shares across a number of different markets with help from a portfolio manager in this free video on personal finance and money management.

Part of the Video Series: Stocks & Bonds
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Video Transcript

Okay, so how do you make money on the stock market? The way you make money is to invest in shares of either stocks, mutual funds, etc., and let that money sit in the stock market. The classic way is to is to slowly, over time, purchase as many shares as possible in in various companies so you're distributed across a bunch of different markets. And as the stock market, over time, increases and those, if those are inherently good companies that you've invested in over time they will appreciate and the stocks will be worth more. So, if you bought something at twenty dollars and now it's worth, after a few years it's worth fifty dollars, well, you've made a thirty dollar increase on however many shares you may, you you purchased. Too, there are many different and more sophisticated ways of doing trading during the day and over shorter periods of time where you can make money in the stock market, and and that's a much more detailed subject. But, the most basic way to make money in the stock market is to invest in good solid companies that are well managed, and just you hold them, as they're called, long. Hold them for a period of time and they will appreciate over that period of time.

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