Stock market tutorial Summary

Stock Market Tutorial - Summary.
1. 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.

2. 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.

3. 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.

4. The two main types of stock are common and preferred. It is also possible for a company to create different classes of stock.

5. 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.

6. Stock prices change according to supply and demand. There are many factors influencing prices, the most important of which is earnings.

7. There is no consensus as to why stock prices move the way they do.

8. To buy stocks you can either use a brokerage or a dividend reinvestment plan (DRIP).

9. Stock tables/quotes actually arenít that hard to read once you know what everything stands for!

10. Bulls make money, bears make money, but pigs get slaughtered.

Table of contents: Stock Market tutorial

1. Stocks: An introduction.
2. What are stocks ?
3. Types of stocks.
4. How stocks trade
5. How stock prices change ?
6. How to purchase stocks ?
7. How to read a stock table/quote.
8. Animals in stock market
9. Stock Market Tutorial: Summary.