In 1792, twenty-four men entered a room and signed a paper that said they would sell parts of companies among themselves and others. The parts of the companies were sold in the form of stocks . This marked the beginning of the stock market. Although times have changed greatly in the last 200 years, the ideas of investing have basically remained the same.
People still buy and sell stocks, bonds, and mutual funds.
Ok, let's say that you have this feeling that McDonalds is going to go up soon. You decide to invest in McDonalds so you would go to a person called a broker and tell them to buy stock in McDonalds. That's a good question. Well, after the broker takes your money, he puts in an order on his computer that is sent to the stock exchange . The order was given to a person called a floor broker .