|What is Investing?
Time Value of Money
Rule of 72
The stock market is one option for investing your money. Stocks are unmatched in comparison to any other investing tool. They are the leading way to make money and stay ahead of inflation over time. This is ideal if you have long term investment goals.
When you invest in stocks that a company offers, you are buying a share of that company. Depending on how well the company does determines how much each share is worth.
Comparing stocks to savings accounts, the tendency is that stocks give you a higher rate of return on your initial investment. But that is not without a risk.
The risk is, your stock is not FDIC insured like a savings account. Whatever you put into savings you are guaranteed to receive, plus your interest.
When you buy stock in a company, they could go bankrupt and the business shuts down, or the stock will not be worth the price you paid for it. These things do happen, but if you invest with the proper strategies, you will usually come out a winner.