For many people, the stock market is one of those topics which they hear about but don’t know much about. They don’t really ​understand how the stock market works or which of the many conflicting opinions to listen to.

Instead of focusing on the mechanics of the stock market right now, let’s look at what the stock market means for you. Investopedia has an excellent description regarding the market’s importance:

“The stock market is one of the most vital components of a free-market economy, as it provides companies with access to capital in exchange for giving investors a slice of ownership.”

When you buy shares of stock in a company, you own a part of that company. If the company is liked by the buying public, there are a couple of ways you can make money on your investment:

•Your shares of stock can increase in value.

•You may receive a periodic payout (known as a dividend) from the company which is portion of the company’s profits.

Yes, that’s pretty simplistic, but I think there are too many “experts” out there who describe the market as something not able to be understood by the common person. Don’t be afraid. Get the facts and enlist a trusted partner such as Advantage Investment Management to help plan your financial future.

Visit our  Services for Individuals  and  Services for Businesses  pages to learn more. Get your questions answered through a free initial consultation. Call us at 502-212-3000 or message us using the form located beneath this post to schedule your Complimentary Portfolio Review today.

We will continue our look at the stock market in future posts.