So, what is exactly is the stock market? The stock market is a place where shares of publicly held companies are issued and traded either through exchange or over the couther markets, which are markets that primarily used to trade bonds, currencies, or derivatives. The stock market is a vital part of being a free-market economy, because it provides companies with access to their capital in exchange for giving investors a slice of ownership of their company. More so, the stock market makes it possible to grow small sums of money into large sums, therefore making it easier for people to make money without having to start a business or make sacrifices with their careers. I’ve invested into five companies, those companies are Microsoft, google, …show more content…
Apple is a computer company that makes computers that come with the operating system created by them as well. Plus they have other services that they provide such as a music service that allows people to buy and download music along with TV or movies. They even expanded into other avenues like phones and music playing devices. Most of the companies did well overall. Bank of America did lose some of its value, however they manage to regain some that later within the week. With Bank of America they can lose or gain value anytime the federal trade commission make an announcement about the federal rate, so it can be hard to make strong gains with them. My portfolio is not very diversified, my companies are mostly filled with technology companies and one bank. Investor diversified their portfolio, because it save them a potential lose when you invest in other companies that specialized in other avenues like shipping or medical. So, say a particular field in medical market is not doing well and you’re expected to take a loss, well you invested in other companies that do other stuff, therefore your loss is less than it would had you invested in just