How would you like to be a part owner of Apple Inc., Coca-Cola or Samsung?
Through the US stock market, anyone can own a piece of literally thousands of large businesses.
How does it work? Private individuals, as well as professional investors, can purchase stock (or shares) in companies that are publicly traded.
When one of these companies sells stock, it is able to raise money that can be used to further the growth of its business.
Over time, if the value of the stock increases, the stockholder will profit. If the value of the company’s stock declines, however, the person who owns shares will lose money.
With such large amounts of money being transferred through the stock market, it is indeed a bellwether (see definition and hear pronunciation below) of the US economy.
Cool word question of the day: Can you think of any bellwethers of the US economy?
Bellwether: An indicator of a future trend; a leader at the forefront of a trend.
Click here to hear a pronunciation of bellwether.
https://coolwordclub.com/wp-content/uploads/bellwether.mp3
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