What Are Stocks?
Ownership
A stock is a tiny piece of ownership in a company. When you buy Apple stock, you literally own a small part of Apple!
Why Companies Sell Stock
Companies sell shares to raise money for growth - like building new factories, developing products, or expanding globally.
Stock Price
The price changes based on supply and demand. If more people want to buy than sell, the price goes up!
How Do People Make Money with Stocks?
1. Capital Gains
Buy Low, Sell High
If you buy a stock at $100 and sell it at $150, you made $50 profit!
Sell 10 shares at $150 = $1,500 return
Profit: $500 (50% return!)
2. Dividends
Get Paid to Hold
Some companies share their profits with stockholders through regular payments called dividends.
Company pays $2 per share yearly dividend
You get: $200/year just for owning!
Live Stock Prices
See real stock prices update in real-time!
Popular Stocks for Beginners
Stock Price Projection Tool
See potential future prices based on historical performance and your holding period
Your Investment Plan
Stock Trading Simulator
Practice buying and selling stocks to see how profits work!
Make a Trade
Your Trade Results
Important Stock Market Concepts
Bull Market vs Bear Market
Bull Market: Stocks are generally going up. Investors are optimistic!
Bear Market: Stocks are generally going down. Investors are pessimistic.
Volatility
How much a stock's price moves up and down. High volatility = big swings, more risk but potentially more reward.
Market Cap
Total value of all a company's shares. Apple has a market cap over $3 trillion!
Market Cap = Share Price × Total Shares
P/E Ratio
Price-to-Earnings ratio shows if a stock might be overpriced or a bargain.
Lower P/E might mean better value
Tips for Young Investors
Start with What You Know
Invest in companies whose products you use and understand. Love Nike shoes? Consider Nike stock!
Diversify
Don't put all your money in one stock. Spread it across different companies and industries.
Think Long-Term
The stock market goes up and down daily, but historically grows over years. Be patient!
Learn Before You Earn
Use simulators and paper trading to practice before using real money.
Important: Understanding Risk
Stocks can lose value! Never invest money you can't afford to lose. The stock market has risks:
- Stock prices can go down, sometimes dramatically
- Companies can go bankrupt (you lose everything invested in that stock)
- Short-term trading is essentially gambling
- Always do research before investing
Golden Rule: Only invest what you can afford to lose completely!