Business & Finance

How the Stock Market Works

A simple explanation of how people buy and sell shares on the stock market.

B17 min

Lesson progress0 / 11 sentences

Sentence 1 of 11

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1The stock market is a place where people buy and sell shares.

2A share is a small part of a company that anyone can own.

3Companies sell shares to get money for growing their business.

4When a company does well, the price of its shares usually rises.

5When business is bad, the share price often goes down.

6Millions of shares change hands in the market every single day.

7Traders watch the news closely because it affects share prices quickly.

8Some people buy shares to keep them for many years.

9Others buy and sell quickly to make a fast profit.

10The market opens in the morning and closes in the afternoon.

11Everyone hopes to buy low and sell high, but it is hard.

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