Investing in stocks is a very common kind of investment. When you invest in stocks, what you are actually purchasing is a share of a company. This makes you a shareholder. In general, if the value of the company goes up so does the value of your shares, and if it goes down well you lose value in your shares. The more stock you buy in a company, the greater percentage of the company you own. Buying stock in a company is like owning a part of a business but not having to physically show up to work! Of course, you still should educate yourself and follow and research your investment.

When you own company stock, you are jut one of many owners. Just because you own part of a company doesn’t mean that you have a role in the every day decisions in running the company. You can’t just start telling Steve Jobs what he’s supposed to do. Instead, what happens is that for each share that you own, you will have a vote in electing the board of directors. The management in turn is supposed to work to increase the value of your shares for you.

The risk of investing in stocks varies according to several factors. However, whatever the market conditions buying stock in huge companies like General Electric will be safer than buying stock in an Internet start up company.

Shares of stocks can be bought and sold on the stock market.  There are many stock markets in the United States as well as other countries around the world. Major stock markets include the Dow Jones Industrial, NASDAQ, Tokyo Stock Exchange, London Stock Exchange, and the Shanghai Stock Exchange.