National Council on Economic Education, New York, NY 10036. All rights reserved. This lesson is designed to spark student interest in the stock market and help the teacher learn what students already know or believe about the stock market. People who buy stocks do so hoping that the stocks will increase in value, thus making their savings grow. All investment decisions involve some risk, however, and people buying stock must also consider that their stock might not increase in value.
Stock markets are important to nearly everyone.
Because they affect so many people, the federal government regulates them even though they are private institutions. To base decisions on an assessment of costs and benefits, choosing the best combination of costs and benefits among the alternatives. The chance of losing money. Risk is the opposite of safety. Setting aside some of today's income for future spending.