What is a Stock?
A stock is a piece of ownership in a company. When you buy a stock, you own a small part of that business and share in its profits or losses
How the Stock Market Works
The stock market is a place where buyers and sellers trade stocks. Prices go up and down based on how much people want to buy or sell a company's stock.
Bull vs. Bear Markets
A bull market is when stock prices rise over time, while a bear market is when prices fall. Investors use these terms to describe how confident they feel about the market.
How to Buy and Sell a Stock
To buy or sell stocks, you use a broker or trading app. You place an order to buy at a certain price or sell when you’re ready to cash out or cut losses.
What is a Portfolio?
Your portfolio is your collection of investments. Having different types of stocks (and other assets) helps manage risk.
Understanding Dividends
Some companies share profits with their investors by paying dividends, usually as cash payments for each share you own.
Growth vs. Value Stocks
Growth stocks are expected to grow quickly and increase in value. Value stocks are cheaper than they should be based on company performance and may offer long-term gains.
How to Read a Stock Chart
Stock charts show how a stock’s price has changed over time. Key features include the price, volume, and highs/lows over a period.
Risk Management Basics
Smart investors manage risk by diversifying their portfolios and only investing what they can afford to lose.
Market Capitalization (Market Cap)
The total value of a company’s shares in the stock market, calculated by multiplying the stock price by the number of outstanding shares.
IPO (Initial Public Offering)
When a private company offers its stock to the public for the first time.
Limit Order
An order to buy or sell a stock at a specific price or better.
Market Order
An order to buy or sell a stock immediately at the best available price.
Blue-Chip Stock
Shares of large, well-established companies known for stability and steady returns.
ETF (Exchange-Traded Fund)
A collection of investments (like stocks or bonds) that trades on an exchange like a stock.
Mutual Fund
A pool of money from many investors that's managed by a professional to buy a collection of stocks, bonds, or other assets.
Diversification
Spreading out investments across different industries or assets to reduce risk.
Volatility
How much a stock’s price moves up and down. High volatility means bigger price swings.
P/E Ratio (Price-to-Earnings Ratio)
A company’s stock price divided by its earnings per share (EPS). Used to value a company.
Dividend Yield
A company's annual dividend divided by its current stock price, shown as a percentage.
Ticker Symbol
A unique set of letters representing a company's stock (like AAPL for Apple, TSLA for Tesla).
Short Selling (Shorting)
Betting that a stock's price will go down by selling borrowed shares and buying them back later at a lower price.
Asset Allocation
How you divide your investments among different asset categories, like stocks, bonds, and cash.
Liquidity
How easily an asset can be converted to cash without affecting its market price.
Capital Gain
The profit you make when you sell an investment for more than you paid for it.
Bear Trap
A temporary decline in stock prices that can trick investors into thinking a downtrend is starting.
Stock Split
When a company increases the number of its shares, reducing the price per share, without changing its overall value.
Index
A measurement of a section of the stock market (like the S&P 500 or Nasdaq Composite).
Risk Tolerance
How much risk an investor is willing to take with their investments.
Start with companies that are known for their price stability (ex: AAPL, COST, MSFT)
Buy/sell only a few shares at a time -- this gives you room for buying/selling at even lower/higher prices than you did initially
Aim to buy low and sell high
Moniter prices regularly, especially for more volatile stocks such as TSLA
Watch what is going on in the news to get an idea of how current events affect price fluctuations