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How do investments and the stock market work?
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Investing in the stock market is when you buy shares of stock from a company. These shares give you a portion of ownership in the company and any profits it makes. When you buy shares of a stock, you are making an investment that can increase or decrease in value depending on the performance of the company and the overall stock market. The stock market is a collection of exchanges where stock and other securities are traded. Companies will list their shares on an exchange, and when someone buys or sells the stock, the exchange matches them together and a transaction takes place. Investors will buy stocks in anticipation of the price going up so they can make a profit, but they also need to watch out for any unexpected changes or economic events that could affect the value of the stock they own.