Stock maket 101

The market wants to be your friend!

"Risk comes from not knowing what you are doing". Warren Buffett

Contents

 

- What is the stock market & why should I care?

- Famous investors

- Questions

- Let's "play the game"!

What is the stock market?

The stock market is a segment of the financial system where public companies can raise capital by selling shares of stock, which represent ownership interest in a company. 

Investors purchase these shares to potentially gain from future profits, dividends, and capital appreciation.

Components:

Exchanges:

Major stock exchanges like the New York Stock Exchange (NYSE) and the NASDAQ facilitate the buying and selling of stocks.

 

Indices:

Stock indices, such as the S&P 500 or the Dow Jones Industrial Average, track the performance of a group of stocks, giving a sense of how the overall market or specific sectors are performing.

Components:

Participants:
Investors: Individuals or institutional investors (like pension funds, mutual funds, and hedge funds) who buy and sell stocks.

Companies: Publicly traded companies that issue shares to raise capital for growth, research, or debt repayment.

Components:

Investment Vehicles:
Besides individual stocks, investors can invest in other instruments linked to the stock market, including exchange-traded funds (ETFs) and mutual funds that pool money from multiple investors to buy a diversified portfolio of stocks.

Title Text

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By jonattfin

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