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Stock Market Basics

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Stock Market Basics
Get the run down on the way that the stock market works! If all of the terminology, charts and graphs leave your head spinning, you’re not alone! Learn the basics of the stock market and ease your way into it. Don’t let the big dogs intimidate you! Once you have expert knowledge on your side you will be on the right path to stock market success. You might also like to look at Stock Markets

Questions Answered by our Experts

Scott Leonard, CFP
Scott Leonard, CFP-President, Leonard Wealth Management, Inc.
Meet the Expert 
Stock Market Basics 
  1. Scott Leonard, CFP
  2. What is the "stock market"? 
  3. What is the difference between "common" and "preferred stock"? 
  4. What is a "large cap" stock? 
  5. What is a "small cap" stock? 
  6. What is a "value" stock? 
  7. What is a "growth" stock? 
  8. What is an "emerging market" stock? 
  9. What is an "over-the-counter" stock? 
  10. What is the "SEC"? 
  11. What is the "NASD"? 
  12. What is a "publicly-traded company"? 
  13. What is the "NYSE"? 
  14. What is the "NASDAQ"? 
  15. Why should I consider investing in the stock market? 
Stock Indexes 
  1. Scott Leonard, CFP
  2. What is the "Dow"? 
  3. What is the "S and P 500 Index"? 
  4. What is the "FTSE Index"? 
  5. What is the "EAFE Index"? 
  6. What is the "NASDAQ Index"? 
Stocks Nuts And Bolts 
  1. Scott Leonard, CFP
  2. How does a trade work? 
  3. What are the "bid" and the "ask"? 
  4. What happens when I give my broker a buy or sell order? 
  5. What is a "market maker", and how does that impact me? 
  6. When is money withdrawn from my account when I make a buy? 
  7. What is a "stock certificate"? 
  8. What if I lose my stock certificate? 
Stock Investing Strategies 
  1. Scott Leonard, CFP
  2. What factors should I consider in making investment decisions? 
  3. What is the "power of compounding"? 
  4. What is "dollar-cost averaging"? 
  5. What are the advantages and disadvantages of dollar-cost averaging? 
  6. What is "investing on margin"? 
  7. What are the pros and cons of investing on margin? 
  8. What is a "call provision"? 
  9. What is an "option"? 
  10. What is the difference between a "trading an option" and a "writing an option"? 
  11. What is "shorting"? 
  12. What is "day-trading"? 
  13. Is day-trading inherently riskier than other forms of investing? 

Popular Questions

  • Why should I consider investing in the stock market?
  • What is the "Dow"?
  • What is the "FTSE Index"?
  • How does a trade work?
  • What happens when I give my broker a buy or sell order?
  • Is day-trading inherently riskier than other forms of investing?
  • Are there factors that make it more likely for the market to go up or down?
  • How does the strength of the dollar impact the markets?
  • What are the pros and cons of online trading?
  • Should I invest in foreign companies?
  • Should I follow advice of the TV and magazine investment experts?
  • What are the key facts investors should know about investing in stocks?
  • What are the top mistakes people make when investing in stocks?
  • What is a "bull market" and how does it impact me?
  • What determines the price of a share of stock?
  • Do share prices in an IPO always go up?
News And The Stock Market 
  1. Scott Leonard, CFP
  2. What is the "Federal Reserve"? 
  3. How do Federal Reserve "announcements" impact the markets? 
  4. Should Federal Reserve announcements impact my investment decisions? 
  5. How do interest rates impact the stock market? 
  6. What is "inflation" and how does it impact my investments? 
  7. Do elections impact the markets? 
  8. Are there factors that make it more likely for the market to go up or down? 
  9. How does the strength of the dollar impact the markets? 
Market Trends 
  1. Scott Leonard, CFP
  2. What are "market trends" and how should they impact my trading decisions? 
  3. What are the pros and cons of online trading? 
  4. Should I invest in foreign companies? 
  5. What is "liquidity"? 
  6. What percentage of my money should I keep in cash? 
  7. What is "tax loss selling"? 
  8. Should I follow advice of the TV and magazine investment experts? 
  9. What are the key facts investors should know about investing in stocks? 
  10. What are the top mistakes people make when investing in stocks? 
How The Markets Work 
  1. Scott Leonard, CFP
  2. What is "bear market" and how does it impact me? 
  3. What is a "bull market" and how does it impact me? 
  4. What determines the price of a share of stock? 
  5. What is "investment rate of return"? 
  6. What are a company's "earnings"? 
  7. How do earnings reports affect the price of stock? 
  8. What is the "price-to-earnings ratio"? 
  9. What is an "IPO"? 
  10. Do share prices in an IPO always go up? 
  11. What is a "stock split"? 
  12. What is "market timing"? 
  13. Can anyone really time the market? 
  14. What is a "market correction" and how does it impact my investments? 
  15. What is "profit taking" and how does it impact my investments? 

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