The stock market, also known as a sharing market, is a market where shares are bought and sold (also known as titles) of companies quoted in the stock market. These actions represent a company that owns a company and entitled their owners to receive a part of the company's benefits in the form of dividends.
The price of shares in the stock market fluctuates based on supply and demand. In addition, it can be influenced by economic, political and market factors. Investors can buy and sell shares in the stock market through a stockbroker or an online negotiation platform.
In addition to this, the stock market is an important source of capital for companies by allowing them to issue and sell shares to investors to finance their operations and growth.
How to invest in the stock market
The stock market allows investment easily, quickly and safely. Although to invest it is always recommended to conduct previous studies to be able to do it as correctly as possible. Some ways in which you can invest in the stock market are as follows.
Actions
The most common way of investing in the stock market is buying shares of companies listed in the stock market. When buying an action, you acquire a small part that owns a company and you have the right to receive a part of the company's benefits in the form of dividends.
The price of shares fluctuates based on supply and demand, and can be influenced by economic, political and market factors.
Mutual funds
This is a way to invest in the stock market in which a group of investors put their money together to buy shares of several companies.
Mutual funds are administered by a fund manager that selects what actions to buy and sell at the bottom. Investors buy mutual fund units and receive a proportional part of the benefits of the fund.
Bag funds (ETFS)
ETFs are similar to mutual funds, but are quoted in the stock exchange as individual actions. ETFS provide an easy way to invest in a variety of actions when buying a single action.
Bonds
Bonds are a way to invest in the stock market. This consists in lending money to a company or government in exchange for interest and the reimbursement of the capital provided on a future date. Bonds are considered a fixed income investment. Since the investor receives fixed interests and the capital borrowed is returned on a specific date.
Options
The options are a contract that gives you the right, but not the obligation, to buy or sell an underlying asset, such as an action, at a fixed price on a future date. You can use options to speculate on the price of an action or to protect your investments.