1. What is the stock market?
A marketplace where buyers and sellers trade shares (stocks) of publicly listed companies.
Companies issue stocks to raise capital, and investors buy/sell them to profit or earn dividends.
2. Key Participants
- Investors (Retail & Institutional)
- Companies (Issuers)
- Brokers & Exchanges (Platforms for trading)
Market makers, regulators (e.g., SEC), and analysts also play roles.
3. How Stocks Are Traded
Primary Market: Companies issue new shares via IPOs.
Secondary Market: Investors trade existing shares (e.g., NYSE, Nasdaq).
4. Key Concepts
- Stock Price: Determined by supply/demand, company performance, and market sentiment.
- Dividends: Some companies share profits with shareholders.
- Volatility: Price fluctuations due to news, earnings, or economic factors.
5. Investment Strategies
- Long-Term Investing (Buy & Hold)
- Trading (Short-Term, e.g., Day Trading)
Other strategies include value investing, growth investing, and dividend investing.
6. Risks & Rewards
High potential returns but with risk of losing capital.
Diversification (spreading investments) reduces risk.
7. Key Metrics
- P/E Ratio (Price-to-Earnings): Measures valuation.
- Market Cap: Total value of a company’s shares.
EPS (Earnings Per Share), ROI (Return on Investment), etc.
8. How to Start Investing
1. Open a brokerage account.
2. Research stocks/funds.
3. Buy/sell via the platform.
Consider index funds/ETFs for beginne
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