Debating on investing in stock market? First, you need to understand what the stock market it. A stock market is a public entity, or a loose network of economic transactions, for the trading of company stock shares and derivatives at an agreed upon price, these are securities that are listed on a stock exchange along with those that are traded privately. The stock market has been around since the late 1700s, when 24 stock brokers and merchants officiated the Buttonwood Agreement.

Stock market investors risk their own money when attempting to make money in stock market. In finance one of the options stock market investors can do is contract that gives the owner the right, but not necessarily the obligation to buy or sell another asset or instrument at a specific price on or before a specific date.

A stock market investing for beginners guide will state that the most common way to divide the market is by the size of the company, sector and types of growth patterns in the company. Stock market investors need to realize that because a stocks value really depends on the earnings, a one hundred dollar stock can be considered cheap if the businesses earnings prospects are high enough, and a two dollar stock can be considered as expensive if the earnings potential seems dim. With over 6,000 publicly traded companies around the states, there are many different stocks for stock market investors to consider investing in. Find out more about this topic here.