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!