Blog: stock research and investing, explained
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
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
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 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
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 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 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 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
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 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 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 →
Educational only, not financial advice.