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Can anyone thoroughly explain the Stock Market to me? What does it mean when stocks are low?

All i know is that in 1929 the stock market crashed but what does that mean? In school they never really explained it to me. Can you explain it to me like a fifth grader because I really don't understand it.

Asked By: blaq2handle - 8/10/2009
Best Answer - Chosen by Asker
Crash just means the stocks went down in price. Stocks represent how much companies are worth. So before the crash, one share of Disney or whatever might be worth $100, then after the crash it may be worth less, like $80 a share. This is perfectly fine if you didn't buy Disney stock when it was at $100 a share. But... More
Answered By: karenchii - 8/10/2009
Additional Answers (3)
---- Stock Market Basics... More
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Answered By: - - - - - - - - - - - - - - - - - 8/10/2009
 
The stock market is where people buy and sell share certificates of businesses. People who own some of these shares own a part of the business. And they are entitled to receive a part of the profits the business makes... More
Answered By: Alvie - 8/10/2009
 
A crash is a physical measurement of the general market dropping 25% or more in one day. That happened in 1987 too... More
Answered By: gregory_dittman - 8/10/2009
 
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