It is possible to trace the stock market back to the late 1700s, in the infancy of the United States. The first American stock exchange was founded, starting in Philadelphia, to improve trade in this new world. The New York Stock Exchange was born a long time ago, which soon gave rise to the New York Stock and Exchange Board, contributing to the now-frenetic pace on Wall Street today.
1. Buying a Stock
In buying a stock, an investor becomes a shareholder or part owner in a company. The company then uses the money supplied by their investors to further their business and increase profits. These profits are reflected in the growing price of the stock and the money needed to purchase a share of the company. Investors who now own stock in the company have seen their investment grow and should they now decide to sell this particular stock they will make more money than they originally paid for it.