The world of stocks and investment companies can be intimidating. Many people are overwhelmed by the number of public companies available to choose from and don’t know what criteria to use for deciding on a good one. This is why financial advisors and services are so valuable — they are a team of experts whose livelihood is to know the ins and outs of this environment.

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Here is just a brief glimpse into how these companies choose stocks to invest their customer’s money in.

First, you will need a brief introduction to what stocks are and how they work. When you purchase a stock, you are purchasing a piece of ownership in that company. If the company makes money, so do you, but if they lose it, so do you. The price of the stock fluctuates depending on how many people are buying compared to how many people are selling.

Investimate companies then look to put money into companies that are likely to increase their profits. How they do this varies depending on the investor, their philosophy, and the needs of their clients. Watch the video linked above for more detailed information.