The stock market is a list of companies who have decided to offer shares in their company for purchase by the public and financial institutions (banks, insurance companies etc). The best known UK stock market is the FTSE 100 which includes the top 100 UK companies.

You can buy stocks and shares in a company listed on the stock market. If their value increases your investment increases. However, if their value falls your savings are also reduced. Losses and gains are only 'real' when shares are actually sold. Many organisations pay an annual dividend to shareholders. However, this depends on how well the organisation is performing.

There are many ways of investing in the stock market without directly buying stocks or shares. Most banks, building societies and insurance companies offer unit trust funds and investment trusts which invest in a wide range of stocks and shares. A good place to find out more is at the Motley Fool web site.