How Does the Stock Market Work?

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The stock market is a place where companies can get information, and a place where individuals can invest in these companies and get out when they wish. Discover how people pay for certain values in the stock market with help from a licensed financial planner in this free video on the stock market and investing.

Part of the Video Series: Stock Market
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Video Transcript

My name is Bill Rae. I'm with Alumni Financial Services. I've been in the business in the finance world for well over 20 years. The question is how does the stock market work? Well there's a, the way the stock market works for all intents and purposes if you understand, use where you are may not be able to know about all the different companies out there that are looking to raise capital and want to grow. So the stock market in it's easiest explanation is as a place where companies can get information too and is available for you to seek out and put your money into. In the stock market you have many brokerages out there. In other words businesses that are setup entirely to help you find these companies that need you money and more importantly a way for you to be able to say to someone else, hey I want to get out of this company, would you like my stocks? Again, very generally that's what the stock market is. We're not talking about giving you stock advice here by the way, in the stock market and in all stocks, as we should be very well aware of, there is potential for total loss of your money so be careful. However, with knowledge and careful planing, it is also a way for you to build a nice retirement. I should tell you that there's also vehicles out there that give you the same type of returns without risking your principal. But in general terms how the stock market works is it is a place where one person can say to another would you like my value and if so, give me money. My name is Bill Rae, I'm with Alumni Financial Services as is always we advise you to seek outside counsel, understand whatever agreements or contracts you're signing. As always, we're here to help you build wealth.


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