Investing in the stock market is thought to be an easy way of earning money. However, it is not so simple after all - before starting you have to learn many things. These range from the basic concepts of investing and stock market to the most comprehensive methods and advanced strategies of earning from these investments.

As we expect some real beginners to search for information here, we think it is crucial to present some basic points of investing in the stock market.

Firstly, you have to understand the purpose of stock. Stocks is a type of shared ownership of business and they are made when a company is in a condition of growing beyond financial resources, supplied by the primary owners. Bringing in new ownership in the company provides new capital that can be used for expansion or other intentions. Each shareholder has a share of company's ownership that is proportional to a number of stocks he has bought. Moreover, shareholders can vote when deciding supervisors or plans and strategies of the company, they get part of gain and can sell their shares at any moment they want.

Another important thing you have to remember is that different investors can have absolutely different experiences with the stocks of the same company. Their success of failure depend or are caused by many interconnected factors, their own decisions and actions of other investors of that same company.

The main feature of the traded stock is its price. This price constantly changes. Current price of a stock is the one, agreed on a deal by the most recent buyer and seller.

Secondly, you have to understand the importance and purposes of the stock markets. Stock markets are a convenient and quick way for buyers and sellers of stocks to meet each other and make deals. Very important people of the stock markets are the brokers and the specialist. Brokers get all buy and sell orders for specific company stocks and direct them to the Stock Exchange specialists. Stock trading specialists match buy and sell orders according offered prices. Brokers and specialists live from fees, paid by individual investors.

So the main purposes of the stock market is a) to render a common space for brokers to reconcile orders; b) to supply organized and honest pricing and offer matching; c) to furnish the mentioned pricing mechanism in a way that the excessive wild swings are as rare as possible; and d) publicly and continuously announce trading amounts and prices.

wild swings are as rare as possible; and d) publicly and continuously announce trading amounts and prices. The main functions of stock market brokers are all linked to the individual investor, that is, you. Brokers are for providing you the access to the markets and the newest information about trading conditions. They also have to supply you the reports of trading accounts and wise advices when deciding what and when to buy and sell.

So the fundamental facets any investor has to understand before investing in the stock market is the concept of a common stock and the stock market itself.

Trading, the index is an indicator that traces specific stocks' trading. Indexes can be used in many ways. They estimate the general wealth of the country, follow the mood of consumers and help to build forecasts of earnings and sales. One more important usage of indexes is benchmarking - the evaluation of the performance of an investment portfolio. To say it in simple way, the best way to understand, whether your portfolio overperformed or underperformed the market, is to compare its performance with the overall market performance, by using an appropriate market index as a benchmark. M