Introduction to stocks and market dynamics
The stock market is where shares of publicly traded companies are bought and sold. It provides companies with access to capital and investors with opportunities to grow wealth.
Understanding how the stock market works is essential for any investor looking to build long-term wealth.
The current market value of a share, determined by supply and demand.
Total value of all company shares (price × shares outstanding).
Regular payments to shareholders from company profits.
The degree of price fluctuations over time.
500 largest U.S. companies, representing about 80% of market value.
30 large, publicly-owned companies in the U.S.
Technology-heavy index with over 3,000 companies.
Purchase stocks and hold them long-term, regardless of short-term fluctuations.
Buy stocks trading below their intrinsic value.
Invest in companies with strong growth potential.
Buy index funds or ETFs that track market indexes.