Risk in the Stock Market

Understanding Risk in the Stock Market

Imagine you have a piggy bank where you save your pocket money. You keep your money there because you want it to be safe. But what if someone tells you that sometimes the piggy bank can break, and you might lose some or even all of your money?

Well, that's kind of like what happens when you invest in the stock market. When you invest in stocks, you're buying a small piece of a company. Just like your piggy bank can break, the value of the stocks you buy can go up and down. Sometimes they go up, and you make money, but other times they can go down, and you might lose some of the money you invested.