--- title: Crypto and the stock market, simply — a lesson of Mova's school · trees and pragmatics description: «Crypto and the stock market, simply», a lesson of the money course of Mova's primary school, sentence by sentence with dependency trees and pragmatics. It begins: The stock market is a place where people buy and sell shares, which are little bits of real companies; if the company does well, its sha --- [Mova](https://md.mova.elamur.ai/free/en/) · [this page in HTML](https://mova.elamur.ai/free/en/corpora/school/money/38-crypto-and-the-stock-market-simply/) [home](https://md.mova.elamur.ai/free/en/) / [corpora](https://md.mova.elamur.ai/free/en/corpora/) / [school](https://md.mova.elamur.ai/free/en/corpora/school/) / [Money](https://md.mova.elamur.ai/free/en/corpora/school/money/) / Crypto and the stock market, simply # Crypto and the stock market, simply Lesson 38 of the money course of Mova's primary school: 18 sentences, each with its syntax tree and pragmatics. The lessons are written for Mova, and their agreed trees are part of Mova corpus 0.4 (CC BY-SA 4.0). How Mova does on its tests: [the lesson at school](https://md.mova.elamur.ai/free/en/school-run/money/38-crypto-and-the-stock-market-simply/). - [0](https://md.mova.elamur.ai/free/en/corpora/school/money/38-crypto-and-the-stock-market-simply/0/) — The stock market is a place where people buy and sell shares, which are little bits of real companies; if the company does well, its share price tends to rise, and if it does badly, it falls. - [1](https://md.mova.elamur.ai/free/en/corpora/school/money/38-crypto-and-the-stock-market-simply/1/) — Picture buying 1 share for £10: if it goes to £12 you are £2 up, and if it drops to £8 you are £2 down; nobody knows for sure which way it will go, not even for a famous company. - [2](https://md.mova.elamur.ai/free/en/corpora/school/money/38-crypto-and-the-stock-market-simply/2/) — Crypto is digital money not run by a government or a bank; its price jumps up and down very fast, as is widely reported, so some people make money and many lose it, like Theo's cousin whose £100 became £50 in a week. - [3](https://md.mova.elamur.ai/free/en/corpora/school/money/38-crypto-and-the-stock-market-simply/3/) — Grown-ups strongly disagree about crypto: some call it the future of money, others call it a bubble or mostly guessing; nobody knows for sure. - [4](https://md.mova.elamur.ai/free/en/corpora/school/money/38-crypto-and-the-stock-market-simply/4/) — The safe rules are simple: anything that promises huge, guaranteed profit is a scam; spreading money across many companies lowers risk; and online videos show the few winners, not the many losers. - [5](https://md.mova.elamur.ai/free/en/corpora/school/money/38-crypto-and-the-stock-market-simply/5/) — The stock market is where shares are bought and sold; a share price is the cost of one share. - [6](https://md.mova.elamur.ai/free/en/corpora/school/money/38-crypto-and-the-stock-market-simply/6/) — Buying a share at £10 and selling at £12 gains £2; if it falls to £8, the loss is £2. - [7](https://md.mova.elamur.ai/free/en/corpora/school/money/38-crypto-and-the-stock-market-simply/7/) — Crypto is digital money not run by a government or a bank; volatile means changing very fast; £100 of crypto falling to £50 is a £50 loss. - [8](https://md.mova.elamur.ai/free/en/corpora/school/money/38-crypto-and-the-stock-market-simply/8/) — Many crypto scams promise huge returns: turning £10 into £1,000 in a month means 100 times more, and no real investment can promise that. - [9](https://md.mova.elamur.ai/free/en/corpora/school/money/38-crypto-and-the-stock-market-simply/9/) — Bitcoin is the most famous cryptocurrency; its price has been reported to jump up and down a lot, for example from £20,000 to £50,000, which is up £30,000, then down to £30,000, which is down £20,000. - [10](https://md.mova.elamur.ai/free/en/corpora/school/money/38-crypto-and-the-stock-market-simply/10/) — Speculation is buying because you hope the price will go up; a bubble is when prices rise far above real value and then burst. - [11](https://md.mova.elamur.ai/free/en/corpora/school/money/38-crypto-and-the-stock-market-simply/11/) — People strongly disagree about crypto: some see new money for the world, others mostly speculation; nobody knows for sure who is right. - [12](https://md.mova.elamur.ai/free/en/corpora/school/money/38-crypto-and-the-stock-market-simply/12/) — Many pensions, money saved for old age, are invested in shares; if a pension owns 1,000 shares and each falls by 30p, it is worth £300 less that day. - [13](https://md.mova.elamur.ai/free/en/corpora/school/money/38-crypto-and-the-stock-market-simply/13/) — Over many years share markets have usually gone up, but not always, and in some years they have lost a fifth of their value or more. - [14](https://md.mova.elamur.ai/free/en/corpora/school/money/38-crypto-and-the-stock-market-simply/14/) — To diversify is to spread your money around; an index fund invests in many companies at once, so £100 spread over 100 companies puts £1 in each, and one company going bust loses only £1. - [15](https://md.mova.elamur.ai/free/en/corpora/school/money/38-crypto-and-the-stock-market-simply/15/) — No share is guaranteed to go up; even big famous companies can fall. - [16](https://md.mova.elamur.ai/free/en/corpora/school/money/38-crypto-and-the-stock-market-simply/16/) — Shares are not quite gambling, because you own a real piece of a real business; but treating shares like a bet is dangerous. - [17](https://md.mova.elamur.ai/free/en/corpora/school/money/38-crypto-and-the-stock-market-simply/17/) — Hype is lots of excitement; a meme stock is a share that becomes popular online; if 1 person gains £1,000 and 10 people lose £100 each, the losers lost £1,000 in total. - ← previous: [Trade, tariffs, rich and poor countries](https://md.mova.elamur.ai/free/en/corpora/school/money/37-trade-tariffs-rich-and-poor-countries/) - next →: [Lending, sharing, charity and tipping](https://md.mova.elamur.ai/free/en/corpora/school/money/39-lending-sharing-charity-and-tipping/) - ↑ back to [Money](https://md.mova.elamur.ai/free/en/corpora/school/money/)