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: Trading Stocks and Order Types
  6. Stocks Basics: Bulls, Bears & Market Sentiment
  7. Stocks Basics: How to Read A Stock Table/Quote
  8. Stocks Basics: Valuing Stocks
  9. Stocks Basics: Conclusion

Let’s recap some of the main points we’ve learned in this tutorial:

  • Stocks are claims to a company’s profit stream and are granted voting rights in installing its board of directors or in approving large corporate actions such as being acquired. Shareholders are not owners of a corporation’s assets and do not involve themselves with corporate management.
  • Stock is equity, bonds are debt. Bondholders are guaranteed a return on their investment and have a higher claim in recovery from a bankruptcy than shareholders. This is generally why stocks are considered riskier investments and require a higher expected 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. Most trading takes place today via electronic trading.
  • Stock market indexes give an overview to how the stock market is “doing.”
  • Stock prices change moment to moment according to supply and demand. There are many factors influencing prices, the most important of which is expectations about earnings. Still, 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).
  • There are a number of different order types, and the type of order you use will depend on whether you are more concerned with price or with completing your order.
  • Stock tables/quotes actually aren't that hard to read once you know what everything stands for!
  • Bulls are optimistic and bull markets are defined by increasing stock prices. Bears are pessimists and bear markets occur when prices fall.

Related Articles
  1. Managing Wealth

    Knowing Your Rights As A Shareholder

    We delve into common stock owners' privileges and how to be vigilant in monitoring a company.
  2. Financial Advisor

    Corporate High-Yield Bonds vs. Equities

    Equities and corporate bonds often play a significant role regarding the diversification of an investor's portfolio. We put both asset classes in contrast.
  3. Insights

    A Breakdown on How the Stock Market Works

    Learn what it means to own stocks and shares, why shares exist, and how you buy and sell them.
  4. Investing

    How Corporate Events Affect Stock- And Bondholders

    Investors tend to buy either stocks or bonds, but rarely choose between the two. Find out when you'll benefit from one over the other.
  5. Managing Wealth

    Taking The Bite Out Of A Bear Market

    Find out which financial instruments will protect you from bear market volatility.
  6. Investing

    Getting Started In Stocks

    We'll provide a step-by-step introduction on how to invest - and succeed - in this market.
  7. Investing

    Making The Trade: Understand Order Types

    Buying and selling stock can be a lot like buying or selling a car. Traders should use and understand tools such as market orders, limit orders, day orders, and good-'til-canceled orders to ensure ...
Frequently Asked Questions
  1. What is the formula for calculating compound annual growth rate (CAGR) in Excel?

    The concept of CAGR is relatively straightforward and requires only three primary inputs: an investments beginning value, ...
  2. How do you calculate return on equity (ROE)?

    Return on equity (ROE) is a ratio that provides investors with insight into how efficiently a company (or more specifically, ...
  3. What is the difference between Communism and Socialism?

    Learn how some countries are incorporating socialist methods into capitalism.
  4. What's the difference between a stop and a limit order?

    A limit order is an order that sets the maximum or minimum at which you are willing to buy or sell a particular stock. With ...
Trading Center