Stocks Basics: Conclusion
  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


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
RELATED TERMS
  1. Stock

    A type of security that signifies ownership in a corporation ...
  2. Equity Market

    The market in which shares are issued and traded, either through ...
  3. Stock Market

    The market in which shares of publicly held companies are issued ...
  4. Common Stock Equivalent

    Securities such as stock options, warrants, preferred bonds, ...
  5. Preferred Stock

    A class of ownership in a corporation that has a higher claim ...
  6. Prior Preferred Stock

    A type of preferred stock with a higher claim on assets and dividends ...
RELATED FAQS
  1. What is the difference between the equity market and the stock market?

    Discover the basic information about the equity, or stock, market and the two primary classifications of equities that are ... Read Answer >>
  2. Can a stock lose all its value? How would this affect a long or short position?

    The answer to the first part of this question is pretty straightforward: yes, stocks are able to lose all their value in ... Read Answer >>
  3. What is common stock and preferred stock?

    Learn about the differences between common and preferred shares. Explore situations where preferred shares have more favorable ... Read Answer >>
  4. I have only $500 to invest, am I limited to buying only penny stocks?

    No, you are not required to invest only in penny stocks - investors are generally not restricted to a certain kind of stock ... Read Answer >>
  5. Can preferred stocks be traded like common stocks? Are their prices the same?

    First, let's look at the differences and similarities between common stocks and preferred stocks. Both represent a piece ... Read Answer >>
  6. What are the types of share capital?

    Understand the characteristics of common stock and preferred stock, the two ways by which companies obtain share capital ... Read Answer >>

You May Also Like

Hot Definitions
  1. Goodwill

    An account that can be found in the assets portion of a company's balance sheet. Goodwill can often arise when one company ...
  2. Return On Invested Capital - ROIC

    A calculation used to assess a company's efficiency at allocating the capital under its control to profitable investments. ...
  3. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  4. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  5. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  6. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
Trading Center