Stock Market Basics

📑 5 slides 👁 5 views 📅 1/19/2026

What is the Stock Market?

A marketplace where buyers and sellers trade shares of publicly listed companies.

What is the Stock Market?
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How Stocks Work

  • Stocks represent ownership in a company; buying shares makes you a partial owner.
  • Prices fluctuate based on supply, demand, and company performance.
  • Blue-chip stocks (e.g., Apple, Amazon) are stable, while growth stocks are riskier.
How Stocks Work
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Key Investment Strategies

  • Long-term investing (buy-and-hold) reduces risk compared to short-term trading.
  • Diversification across sectors minimizes losses if one industry underperforms.
  • Dollar-cost averaging invests fixed amounts regularly to smooth out volatility.
Key Investment Strategies
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Risks & Rewards

  • Historically, stocks average 7-10% annual returns but can drop sharply in downturns.
  • Market crashes (e.g., 2008, 2020) are temporary but test investor patience.
  • Research and due diligence help identify undervalued stocks with growth potential.
Risks & Rewards
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Getting Started

  • Open a brokerage account (e.g., Fidelity, Robinhood) to begin trading.
  • Start with ETFs or index funds for low-cost, diversified exposure.
  • Stay informed via financial news, earnings reports, and economic indicators.
Getting Started
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