EssentialsInvesting 101Foundations

Foundations

The essential building blocks every investor needs to understand before anything else.

01

What is the Stock Market?

The stock market is where buyers and sellers trade shares of publicly listed companies. Here is how it works and why it exists.

02

What is a Stock?

A stock represents a small piece of ownership in a company. Here is what that means and why people buy them.

03

What is a Shareholder?

A shareholder is anyone who owns at least one share of a company. Here is what that means in practice.

04

What is a Bond?

A bond is a loan you give to a company or government in exchange for regular interest payments. Here is how it works.

05

What is a Market Cap?

Market cap tells you how much the market thinks a company is worth. It is one of the most useful numbers in investing.

06

What is an Index?

A stock market index tracks the performance of a group of companies. Here is what that means and why it matters.

07

What is the S&P 500?

The S&P 500 is the most widely followed stock market index in the world. Here is what it tracks and why it matters.

08

What is the Dow Jones?

The Dow Jones is one of the oldest and most recognisable stock market indexes in the world. Here is what it actually tracks.

09

What is the Nasdaq?

The Nasdaq is a stock exchange and an index heavily associated with technology companies. Here is what makes it different.

10

What is a Stock Exchange?

A stock exchange is the marketplace where shares are bought and sold. Here is how it works and why it exists.

11

Who Regulates the Market?

Financial markets are overseen by regulators whose job is to protect investors and keep markets fair. Here is who they are and what they do.

12

What is a Broker?

A broker is the intermediary between you and the stock market. Here is what brokers do and how to think about choosing one.

13

What is a Brokerage Account?

A brokerage account is where your investments live. Here is what it is, how it works, and what to expect when opening one.

14

What Types of Accounts Exist?

Not all investment accounts work the same way. Here is a plain-English breakdown of the main types and what each one is for.

15

What is a Portfolio?

A portfolio is the collection of all your investments. Here is what that means and why thinking in terms of a portfolio matters.