Stocks Basics: Introduction
Turn on the TV news or open a newspaper, surf the internet or listen to the radio, and you will probably come across some information about the stock market: “The Dow Jones closed at record highs”; “The S&P 500 is trading down two-tenths of one percent”; “The stock market is reacting to news from Washington.” The stock market seems to be everywhere in our daily lives, but what exactly is the stock market? And, what are stocks that are bought and sold on this market? What does it mean for you, for your employer, or for your country’s economy when the stock market had “a good day”? The answers to these questions are not always obvious once we begin to think about what stocks are. For example, you may have heard that owning stock means that you become an owner of that company. In this tutorial, we will answer these questions and more, often going into some depth to explain core concepts. Speculation, on the other hand, is akin to gambling. Stocks Basics: What Are Stocks?