Investing in stocks: the basics

Investing in stocks means buying shares of ownership in a public company. Those small shares are known as the company’s stock, and by investing in that stock, you’re hoping the company grows and performs well over time. When that happens, your shares may become more valuable, and other investors may be willing to buy them from you for more than you paid for them. That means you could earn a profit if you decide to sell them.

Investing in the stock market is a long game. A good rule of thumb is to have a diversified investment portfolio and stay invested, even when the market has ups and downs. One of the best ways for beginners to get started investing in the stock market is to put money in an online investment account, which can then be used to invest in shares of stock or stock mutual funds.

With many brokerage accounts, you can start investing for the price of a single share. Some brokers also offer paper trading, which lets you learn how to buy and sell with stock market simulators before you invest any real money.