Therefore in a market value weighted index stock a represents 83 percent of the index s value because of its much larger market cap. When you buy a share of stock you re entitled to a small fraction of the assets and earnings of that company.

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The good or bad things that happen to one have a direct effect on the other.

Dummies for stock market. 40 stock market terms that every beginner should know. By paul mladjenovic. You re investing in stocks good for you.

Understanding the stock market can be a daunting task for any new investor. A stock s market capitalization cap is the sum of the total shares outstanding multiplied by the share price. To make the most of your money and your choices educate yourself on how to make stock investments confidently and intelligently familiarize yourself with the internet resources available to help you evaluate stocks and find ways to protect the money you earn.

Enter your mobile number or email address below and we ll send you a link to download the free kindle app. The s p 500 for example is given a beta of 1. Stock investing for dummies for dummies and millions of other books are available for instant access.

From stock investing for dummies 6th edition. Then you can start reading kindle books on your smartphone tablet or computer no kindle device required. The stock market and the economy are joined at the hip.

Not only are there many concepts and technical terms to decipher but nearly everybody will try to give you conflicting pieces of advice. A stock with a beta of 2 is considered twice as volatile as the index. The stock market can be intimidating but a little information can help ease your fears.

How to read a stock table learning how to read stocks by using stock tables to gather information can help you select promising investment opportunities and monitor your stocks performance. Let s start with some basic definitions. Say that in your portfolio you have 10 million shares of a 20 stock stock a and 1 million shares of a 40 stock stock b.

Stock a s market cap is 200 million while stock b s market cap is 40 million. A stock market crash is a sudden very sharp drop in stock prices like in october 1987 when stocks plunged 23 in a. How is it measured.

In other words if the index falls by 10 percent the stock in question has the potential of falling by 20 percent. A share of stock is literally a share in the ownership of a company. By paul mladjenovic.

A stock market correction happens when the stock market drops by 10 or more. A working knowledge of basic economics is crucial to your success and proficiency as a stock investor. For example a company s market cap would be 50 million if it has 1 million outstanding shares priced at 50 each.

Beta is a statistical measure of how volatile a particular stock is relative to a market standard. Basic economics for stock market investors. The stock tables in major business publications such as the wall street journal and investor s business daily are loaded with information that can.