Even if you aren't planning to buy stocks yet, you should get to know the stock market. Learning how it works can help you become a more educated investor - and just might pay off in the long run.
You know the expression "Buy low, sell high"? Well, it's not just a cliché - it's the basic strategy for succeeding in the stock market.
When you buy a stock, you are actually purchasing a very small piece of a corporation. You're hoping the company does well and its stock price goes up over time, so you and the other shareholders can make money when you sell.
Of course, this has a downside. If the company doesn't do well, the stock price takes a dive - and you could lose part or all of your investment if you decide to sell.