The reality is that investing in the stock market carries risk, but when approached in a disciplined manner, it is one of the most efficient ways to build up one's net worth.2

While the value of one's home typically accounts for most of the net worth of the average individual, most of the affluent and very rich generally have the majority of their wealth invested in stocks.3 In order to understand the mechanics of the stock market, let's begin by delving into the definition of a stock and its different types.

When you invest your money in the stock market, it has the potential to grow quicker than if you leave it in a savings account, albeit with more risk.

Sell shares for more than you bought them for. The market price of shares fluctuates due to supply and demand, driven by the attractiveness of a company and its performance.

Shares can rise in value over time and you may be able to sell them for more than you bought them, with the difference in those prices known as your capital growth.

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