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How does it work ?

What is a stock market ?

Understanding the stock market

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A stock market is a place of business where you buy, sell and trade stocks and bonds.

When you buy a stock you now own a part of a company you've invested in. If the company is successful and makes a profit so do you but if a company fails and loses profit you do also.
So you either gain or lose money but nothing is guaranteed.

Why was the stock market so important during those times?

The stock market was one of the most important sources for companies to raise money. America economy was heavily based on the stock market during those times . The stock market was seen as a quick and easy way to gain money fast .. In fact it was called "the new gold rush" nearly every American invested into the stalk market in the 1920s