Stocks Basics: Conclusion
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  1. Stocks Basics: Introduction
  2. Stocks Basics: What Are Stocks?
  3. Stocks Basics: Different Types Of Stocks
  4. Stocks Basics: How Stocks Trade
  5. Stocks Basics: What Causes Stock Prices To Change?
  6. Stocks Basics: Buying Stocks
  7. Stocks Basics: How to Read A Stock Table/Quote
  8. Stocks Basics: The Bulls, The Bears And The Farm
  9. Stocks Basics: Conclusion
Stocks Basics: Conclusion

Stocks Basics: Conclusion


Let's recap what we've learned in this tutorial:

  • Stock means ownership. As an owner, you have a claim on the assets and earnings of a company as well as voting rights with your shares.
  • Stock is equity, bonds are debt. Bondholders are guaranteed a return on their investment and have a higher claim than shareholders. This is generally why stocks are considered riskier investments and require a higher rate of return.
  • You can lose all of your investment with stocks. The flip-side of this is you can make a lot of money if you invest in the right company.
  • The two main types of stock are common and preferred. It is also possible for a company to create different classes of stock.
  • Stock markets are places where buyers and sellers of stock meet to trade. The NYSE and the Nasdaq are the most important exchanges in the United States.
  • Stock prices change according to supply and demand. There are many factors influencing prices, the most important of which is earnings.
  • There is no consensus as to why stock prices move the way they do.
  • To buy stocks you can either use a brokerage or a dividend reinvestment plan (DRIP).
  • Stock tables/quotes actually aren't that hard to read once you know what everything stands for!
  • Bulls make money, bears make money, but pigs get slaughtered!

  1. Stocks Basics: Introduction
  2. Stocks Basics: What Are Stocks?
  3. Stocks Basics: Different Types Of Stocks
  4. Stocks Basics: How Stocks Trade
  5. Stocks Basics: What Causes Stock Prices To Change?
  6. Stocks Basics: Buying Stocks
  7. Stocks Basics: How to Read A Stock Table/Quote
  8. Stocks Basics: The Bulls, The Bears And The Farm
  9. Stocks Basics: Conclusion
Stocks Basics: Conclusion
RELATED TERMS
  1. Bid Wanted

    An announcement by an investor who holds a security that he or ...
  2. Float Shrink

    A reduction in the number of a publicly traded company’s shares ...
  3. Capital Strike

    A refusal of businesses to invest in a particular sector of the ...
  4. Market Value

    The price an asset would fetch in the marketplace. Market value ...
  5. Gray Market

    An unofficial market where securities are traded. Gray (or “grey”) ...
  6. Floating Stock

    The number of shares available for trading of a particular stock. ...
  1. Why do stock prices change following news reports?

    Stock prices move up and down every minute due to fluctuations in supply and demand. If more people want to buy a particular ...
  2. What is the difference between the Dow and the Nasdaq?

    Because of the way people throw around the words "Dow" and "Nasdaq," both terms have become synonymous with "the market," ...
  3. What is the downtick-uptick rule on the NYSE?

    To ensure orderly markets, the New York Stock Exchange (NYSE) has a set of restrictions that it can implement when experiencing ...
  4. How do I calculate the adjusted closing price for a stock?

    When trading is done for the day on a recognized exchange, all stocks are priced at close. The price that is quoted at the ...
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