We’ll start our section on Learning to Invest by describing our Brains approach to investing, using common investing terms we bolded for your convenience. Those terms will then be described in further detail later in this section, so you can understand investing better in context to your Brains portfolio.
Brains was created for people new to investing, who know little about investing, and want the investing process to be painless and enjoyable.
Some people live paycheck to paycheck and never have any money left over at the end of the month. That’s a very dangerous position to be in as an emergency could always pop up, including losing your job.
The purpose of investing is so your money grows in value over time. There are a few common places where you can do this.
Let’s go through some of the more common investments products beyond checking and savings accounts offered by some banks, investment advisors, and robo-advisors.
A stock exchange is a market for people to trade stocks and other equities. There are buyers and sellers, and thus a market price one is willing to sell and buy for. There are lots of exchanges in America, and most major countries have at least one exchange as well.
From investment advisors to the stock exchanges, everyone needs to make money to pay salaries and such, so they get their fees in various ways.
The general purpose of owning a fund is diversification to reduce your risk, principally by spreading your risk across many stocks.