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Market basics

Plain-English guides with worked examples: how to read financial statements, value a business, use technical indicators and manage risk. See the complete Financial knowledge series →

All 154Market basics 15Trading and market structure 16Reading financial statements 15Ratios and business quality 15Valuation 15Advanced valuation and methods 15Technical analysis 15Portfolio, risk and behaviour 15Economy, sectors and the calendar 22Commodities 2Forex 5Hedge funds 3Rates and macro 1
Market basics5 min read What is a stock? Ownership, shares and why prices move A stock is a share of ownership in a company. Learn what shareholders actually own, how they can earn a return, and why stock prices change... Read the article → Market basics5 min read How the stock market works: buyers, sellers and prices See how buyers and sellers are matched, how bids and asks set a stock's price, and who sits between your broker and the exchange when you pl... Read the article → Market basics4 min read NYSE vs Nasdaq: how the main US exchanges differ The NYSE and Nasdaq are the two largest US stock exchanges. See how their trading models, listing rules and company mix differ, and why it r... Read the article → Market basics4 min read What is a stock market index and how is it built? A stock index tracks a group of stocks with one number. Learn how price-weighted, market-cap-weighted and equal-weighted indexes are built a... Read the article → Market basics4 min read The S&P 500 explained: what it holds and why it matters The S&P 500 is the most widely followed benchmark of large US companies. Learn how it is chosen and weighted, what it leaves out and why con... Read the article → Market basics5 min read Dow Jones, Nasdaq Composite and Nasdaq 100: what each measures The Dow, the Nasdaq Composite and the Nasdaq-100 are often quoted next to the S&P 500. See how each is built and why they can move different... Read the article → Market basics5 min read Market cap (market capitalization): how to size up a company Market capitalization is share price times shares outstanding. Learn how to calculate it, why it differs from enterprise value and what it c... Read the article → Market basics4 min read Large-cap, mid-cap and small-cap stocks compared Large-, mid- and small-cap stocks are grouped by market value. See the typical cut-offs, how risk and liquidity tend to differ, and why the... Read the article →
Market basics5 min read What is an IPO and how does a company go public? An initial public offering is when a private company first sells shares to the public. Learn the steps, who is involved, what lock-ups are a... Read the article → Market basics5 min read Common vs preferred stock: voting, dividends and priority Common and preferred stock are both equity but differ in voting rights, dividend certainty and priority in bankruptcy. See how they compare... Read the article → Market basics5 min read Stock splits and reverse splits: what changes and what does not A split changes the number of shares and the price per share, not the value of your holding. Learn how forward and reverse splits work and w... Read the article → Market basics5 min read What is an ETF and how does it work? An exchange-traded fund holds a basket of assets and trades like a stock all day. Learn how ETFs track an index, what they cost and where th... Read the article → Market basics9 min read ETF vs stock vs mutual fund: differences, costs and taxes Compare ETFs, mutual funds and individual stocks on trading, cost, taxes, diversification and control, so you can see which trade-offs each... Read the article → Market basics5 min read How bonds work: coupons, maturity and credit risk A bond is a loan you make to a government or company in return for interest and your money back at maturity. Learn the terms, the main risks... Read the article → Market basics5 min read Why bond prices fall when yields rise Bond prices and yields move in opposite directions. See why with a worked example, how duration measures the sensitivity, and what it means... Read the article →

Educational only, not financial advice.