Investing in stocks can be the most lucrative way to grow your $1,000. A stock (also known as shares) is a form of security that represents the ownership of a company. Buying stocks in a company can help the company to grow. If the company does grow over time, then you can expect profit. For example, if you brought 1 share of Microsoft at $42.26 on January 2nd, 2015 and sold that same share at $100.32 on January 2nd, 2019, then you would have made a $58.06 profit ($100.32-$42.26=$58.06). People don’t just buy 1 share of a company. Instead, they would buy multiple shares of a company. They can buy 10 shares, 100 shares, 1000 shares, and so on and so on. The limit to the number of shares you can buy will depend on how much money you are willing to invest. If I brought 20 shares of Microsoft at $42.26 on January 2nd, 2019, then I would have to pay $845.2 (20 times $42.26=$845.2). On January 2nd, 2019, those 20 shares of Microsoft would be worth $2006.4 (20 times $100.32=$2006.4). If I sold those 20 shares on that date, then I would have made a $1161.2 profit ($2006.4-$845.2=$1161.2). There are many other ways to make money from the stock market, but this is the most basic method of making money. While you can make money in the stock market, you can also lose money by investing in failing companies or selling a stock at a lower price than what you brought it for. For example, you can invest $1,000 in a company that shows no growth. Eventually, that company will drop in value and can even go bankrupt. If the company does go bankrupt, that means you lost $1,000. When investing in the stock market, there is always a certain level of risk involved. If you don’t research the company that you will invest in, then there is a high probability of losing money. If you don’t want to research the company that you will invest in, then I would recommend investing in an index fund. According to Investopedia, an index fund is “a portfolio of stocks or bonds designed to mimic the composition and performance of a financial market index.” Basically, an index fund tracks a certain part of the market. The most popular index fund is the Standard & Poor’s 500 Index (S&P 500), which tracks the top 500 companies in the United States and represents the overall market as a whole. You can invest in the S$P 500 through the SPDR S&P 500 ETF. Buying the S&P 500 and holding it for decades can show great long-term return. The graph below shows the value of the S&P 500 from its inception in 1926 to present time as of this blog. Over the long-term, the S&P 500 has grown to greater height.