Have you ever wondered what exactly someone needs to do in order to purchase stocks on the stock market? Do you often feel left out when the TV news switches to the business news of the day and spends a large portion of the time discussing how the stock market is doing? Well fret no more. Here is a simple to understand explanation of what stocks and the stock market is all about.

First it is important to distinguish between the primary market and the secondary market. The primary market is where, through the means of an IPO, new securities are created. The secondary market is where most stocks are traded. These are the stocks that have already been issued, and no issuing companies are involved here. It is crucial to realize that the trading of a company’s stock does not involve the company in a direct way.

One way to learn about how to trade stocks is by playing a fantasy stock market simulator game on line. The game called ‘Wall Street Survivor’ is easy, designed for beginners, and is free to sign up on the internet. You will learn by doing here, the best way to learn. Find out how to buy and sell stocks, and learn about all the different choices people need to make when they are trading stocks.