The stock market is a bit like the housing market or the foreign exchange market. Here the ‘market’ is a term used to describe the supply and demand for stocks.

You might have seen the stock market report in the finance section of the news or newspaper. The stock market is very reactive. It can go up and down because of political unrest, natural disasters or even the opinions of influential consumers. Kylie Jenner sent Snapchat’s stock price tumbling almost 10% when she tweeted “sooo does anyone else not open Snapchat anymore? Or is it just me… ugh this is so sad”.

Tips and tricks

Focus on the long term performance of a company. New investors are often distracted by stock spikes from celebrities, news and events that quickly bounce back to their regular price

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