What is a Stock Market? A Simple Explanation for Kids, Teens and Beginners


Introduction to the Stock Market for Kids and Teens

This video explains the concept of stock markets in a simple, concise way for kids and beginners. It could be used by kids & teens to learn about equity markets, or used as a money & personal finance resource by parents and teachers as part of a Financial Literacy course or K-12 curriculum.

What is a Stock Market - A Simple Explanation for Kids Teens and Beginners
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Suitable for students from grade levels:

  • Kindergarten
  • Elementary School
  • Middle School
  • High School

The topics covered are:


In the newspaper, I read about the stock market going down. But…

What is Stock Market anyway?

Stock Market for Kids Teens and Beginners - A Simple Definition
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Like any other market, a stock market is a place where stocks are bought and sold.

So is it a place like the supermarket, where I can go and buy stocks?

The stock market is not one single physical market. It is a collection of all the stock exchanges where stocks can be traded.

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Can only stocks be traded in the stock market?

While the trading is primarily in stocks, other financial securities like exchange traded funds or ETFs, derivatives, commodities, currencies, etc are also traded in the stock market.

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So when someone says the stock market is going up or down, what exactly does it mean?

When people say this, they are usually referring to the stock indexes – which are used to provide a snapshot of the stock market. Some examples of popular stock indexes are the Dow Jones Industrial Average or the Dow, S&P 500 and NASDAQ.

You may also like:  What are Sectors? Industry vs Sector for Diversification

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What is a Stock Market
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