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 142Market basics 15Trading and market structure 15Reading financial statements 15Ratios and business quality 15Valuation 15Advanced valuation and methods 15Technical analysis 15Portfolio, risk and behaviour 15Economy, sectors and the calendar 22
Market basics · 5 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...
Market basics · 5 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...
Market basics · 4 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...
Market basics · 4 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...
Market basics · 4 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 le...
Market basics · 5 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 the...
Market basics · 5 min read
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...
Market basics · 4 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...
Market basics · 5 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,...
Market basics · 5 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. S...
Market basics · 5 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 rever...
Market basics · 5 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 th...
Market basics · 5 min read
ETF vs mutual fund vs individual stock
Compare ETFs, mutual funds and individual stocks on trading, cost, taxes, diversification and control, so you can see wh...
Market basics · 5 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 t...
Market basics · 5 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...
Educational only, not financial advice.