Stock market basics, explained for beginners

A stock is a small share of ownership in a company, and the stock market is where those shares are bought and sold. Prices move as buyers and sellers weigh each company's future profits. The basics lessons explain how this works, how to read company accounts and the big ideas investors rely on.

Yes. Every basics lesson is free to read, with no account needed. A free account saves your course progress if you want it.

Start with Big Investing Ideas, which explain the principles the rest of the site builds on. Then read the Practical Guides, then Great Investors, and finally Reading Charts, because chart signals make more sense once you know what a business is worth.

Companies sell shares to raise money, and investors then trade those shares with each other on exchanges such as the New York Stock Exchange and Nasdaq, through a broker. A share price rises or falls as investors change their view of the company's future profits.

Investors buy part of a business and usually hold it for years, aiming to benefit as the business grows. Traders buy and sell over shorter periods, aiming to profit from price moves. The basics cover both, starting with long term investing principles.

Compounding means your returns start earning returns of their own, so growth speeds up the longer you stay invested. It is why starting early matters so much. The compound interest lesson explains how it works.

A stock chart plots a share's price over time, usually with trading volume underneath. Start by spotting the trend, then look for support and resistance levels and check the volume. The chart lessons explain each step and the indicators traders use, such as moving averages and RSI.

Yes. They are written for beginners and assume no prior knowledge, and they also work as a quick reference for experienced investors. If a word stops you, the investment glossary explains it.

The StockEducation editorial team writes them. Lessons checked for educational accuracy by Associate Professor Charles Lo, CPA, PhD, the site's academic reviewer, show his name and the review date on the page.

No. StockEducation is education only. The lessons explain how investing works so you can make your own decisions, and they never give buy or sell recommendations or personal advice.