Mr. Market

Mr. Market is an imaginary friend who helps you think about the stock market. The stock market is where people buy and sell stocks, which are small parts of companies. Mr. Market wants to help you decide if a stock you are considering investing in is a good choice. He does this by giving you two prices. One price is what he thinks the stock is worth, and the other is what he thinks you should pay for it. When the price Mr. Market thinks you should pay for the stock is lower than the price he thinks it is worth, it means that the stock might be a good buy. And when the price he thinks you should pay is higher than the price he thinks it is worth, it means you should think twice before buying the stock. So, Mr. Market helps you decide if a stock is a good buy or not by giving you two prices.