"stock market"

Happy Saturday!
You guys are amazing for opening this newsletter. You’re also kinda weird in society, because you actually are trying to be more financially educated.

DEFINITION
What is the “stock market”?

• The stock market is like a big marketplace where people buy and sell tiny pieces of companies, called "stocks" or "shares." When you own a stock, you own a small part of that company. People buy stocks hoping the company will do well and make more money, which makes their shares worth more. If the company does well, the value of your shares goes up, and you can sell them for more money than you paid. But if the company doesn’t do well, the value of your shares can go down, and you might lose money. The stock market is a way for companies to raise money to grow and for people to invest and potentially make money.

PRACTICAL ADVICE
Stonks aren’t just for finance bros

• You don’t need to be studying the stock market 24/7. You also don’t need to try and bet which companies are going to do well. You can get something called an “index fund” which allows you to invest in a TON of different stocks at once. Which is what people mean when you “diversify.”

We’ll talk more about this next week!

OUR COMMUNITY
What are your questions? Or share a win!

• Reply to this email with any personal finance question you have, or share with me any wins in your life! (I’ll respond to your questions anonymously in future emails)