Stock Market 101: Key Concepts

Hey guys! I’m back again with another Financial Literacy post! Today, I am discussing stock market key concepts and vocabulary! Learning new things is so fun especially during these times! I hope that you can learn something new or refine your knowledge on the stock market! I would love if you share something you learned from this blog post and/or add anything that you think would be important for others to know in the comments! Sharing is caring!

This photo is a screenshot of a Yahoo Finance summary for Amazon:

Open – the price of the stock when trading begins

Bid – current highest price someone’s willing to pay for a stock

Ask – Current lowest price someone’s willing to sell the stock at

Volume – Amount of shares being traded

Day’s Range – the lowest to highest price of a stock for the day

Market Cap – the total value of all a company’s shares of stock (calculated by multiplying the price of a stock by its total number of outstanding shares)

Beta – a measure of a stock’s volatility. If a stock moves less than the market, the stock’s beta is less than 1.0. High beta stocks = more risk, higher return; Low beta stocks = less risk, lower returns

P/E Ratio – a company’s share price to its earnings per share

EPS(Earnings per share) – a company’s profit divided by the outstanding shares of its common stock

Earnings date – the date of the next release of a company’s financial report


Its imperative that you do your own research on the stocks you are interested in investing in! Below are some of the resources that I have found helpful throughout my investing journey! I would love if you would share your favorite resources and/or tips for understanding the market!

Resources:

Robinhood:

Below is a screenshot of the Amazon stats that are displayed on Robinhood! As you can see it is less complex than Yahoo Finance, which is great for beginners! Personally, I love using this platform to invest! It is free to download and easy to use! If you would like to check it out, use my link and get a free stock when you sign up: https://join.robinhood.com/brittah759

Yahoo Finance:

I use Yahoo Finance to research stocks and companies I am interested in investing in! I was introduced formally to Yahoo Finance my freshman year in undergrad by my Financial Literacy professor. She taught us how to navigate Yahoo Finance to be able to get the most meaningful information out of this resource! Research is so so so important when investing in anything especially the stock market!

Investopedia:

Investopedia is another good resource for investing! There are education tools, market news, personal finance assistance and courses available to you! I have learned so much about money from this resource!

Investopedia Simulator:

If you are hesitant with investing real money into the market, this is the tool for you! The Investopedia Simulator is completely risk free, you use $100,000 of Fake money to invest in the stock market in real time! You are able to create strategies and build confidence before actually investing your money!

Market Monday’s (EYL):

YouTube University is your best friend especially if you are a visual learner! Everything is free which is great! Market Monday’s is a segment created by Earn Your Leisure, every Monday the founders of EYL have stock market experts hold a seminar in real time about everything concerning the stock market! I started watching at the beginning of the quarantine and have learned so much! I have linked an episode that I really enjoyed and I hope you will enjoy it as well!

The Intelligent Investor by Benjamin Graham:

I recommend this book for anyone interested in starting a journey in stock market investing! This book was assigned in my Financial Literacy course and it changed the way I thought about investing and helped me to build my own strategies for investing! Reading books is the easiest way to obtain knowledge!

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