The Complete Beginner's Guide to Investing in Stock

How Owning Shares of Companies Can Help You Build Wealth

History has shown that investing in stocks is one of the easiest and most profitable ways to build wealth over the long-term. With a handful of notable exceptions, almost every member of the Forbes 400 list got there because they own a large block of shares in a public or private corporation.  Although your beginning may be humble, this guide to investing in stocks will explain what stocks are, how you can make money from them, and much more.

What Is Stock?

What Is Stock?
Before you can begin investing, you need to understand the answer to a simple question: "What is stock?" A share of stock represents an ownership interest in a business, entitling the owner to a share of the profits or losses. DNY59 / E+ / Getty Images

Have you ever asked yourself, "What is stock?" or wondered why shares of stock exist? This introduction to the world of investing in stocks will provide answers to those questions and show you just how simple Wall Street really is. It may turn out to be one of the most important articles you've ever read if you don't understand what stocks represent. Find out the answer to "What is Stock?" and how it comes to exist ... More

How Do I Actually Make Money from Investing in Stocks?

How Do I Actually Make Money Investing in Stock?
There are a handful of ways to make money from investing in stock. Let's take a look at them. Getty Images

You probably know that investing in stocks is a way to get rich but very few new investors actually realize how you make money from your shares of stock. Now, you don't have to wonder any longer. Let us show you the two ways you can profit from owning and investing in stocks, and some of the factors that determine how fast a company grows. Find out how to make money from owning stocks ... More

How to Invest in Stocks

Stock Market Investing in Stocks

Once you've come up with a list of potential stock investments, you need to actually jump in and start buying shares. How do you do it? It's not hard at all. Let us show you how to invest in stocks ... More

How Can I Find Stocks for My Portfolio?

Investing Ideas for Investing in Stocks

Now that you understand the basics of investing in stocks, the next step is to find investment ideas. You need the names of actual companies in which you want to purchase stock. How can you find good investment ideas? Here are some suggestions ... More

Why Do Stock Prices Fluctuate?

Stock Market Fluctuations

When you own shares of stock, you better get used to your portfolio going up 50% or falling 50% over short periods of time. What, exactly, makes shares of stock fluctuate so much? The answer is really simple ... More

What Is a Stock Split?

What Is a Stock Split?
A stock split is a type of transaction that involves changing the number of shares outstanding through the issuance of additional shares. It is designed to lower the nominal price per share of a company's stock to make it more affordable for investors and increase liquidity. Getty Images

If you invest in stock, you are going to experience a stock split at one time or another. What is a stock split? Are stock splits good or bad for you? Find out what stock splits do to your investments ... More

What Is a Stock's Market Capitalization (and Why Should I Care)?

Stock Market Capitalization
Stock market capitalization is a financial metric used to value all outstanding common stock of a corporation to determine its size relative to other businesses. It is different from enterprise value in that it does not take into account things like outstanding bonds or other securities issued by the firm. loveguli / E+ / Getty Images

Once you begin investing in stock, you need to pay close attention to the market capitalization of each stock you own. Terms such as mega cap, big cap, small cap, and micro cap may not make sense to you now, but in a few moments, it will be old hat. Find out more about how market capitalization influences your investment returns ... More

What You Should Know About Stock Prices

How to Think About Stock Prices
Stock price is only one variable in determining the wealth you generate from owning a business, and even then, it is often misunderstood due to spin-offs, dividends, distributed warrants, stock splits, and other capital structure changes. Stuart Kinlough / Ikon Images / Getty Images

Did you know a $50 stock can be more expensive than an $800 stock? It has to do with the way corporations are structured and as a new investor, this is one of the most important things you need to learn before you invest a single dollar into the stock market. Find out how you should think about share price ... More

Dividends 101

Dividends on Your Stock Investments

Studies have shown that 99% of the real, after-inflation return you earn on your stock investments will come from the dividends you receive each year. This guide covers everything a new stock investor needs to know about dividends including how they are paid, and much more. More

Should I Invest In Blue Chip Stocks?

Origin of the Term Blue Chip Stock
The term blue chip stock comes from the fact that blue chips were the highest value chips in poker games. Likewise, a blue chip stock is one that represents the highest quality firm in which an investor can acquire an ownership stake. Getty Images News

Now that you are an investor, you are going to hear a lot about blue chip stocks, or bellwethers as they were called in the old days. How is investing in blue chip stocks different, and why would you consider adding them to your portfolio? Discover the benefits of blue chip stocks ... More

How Is Investing in Preferred Stock Different from Investing in Stock?

Investing in Shares of Preferred Stock

Preferred stock is very different from regular shares of common stock that virtually all investors have owned at one time or another. In fact, preferred stocks have their own list of risks and drawbacks. Find out how investing in preferred stocks is different ... More

How To Choose a Stock Broker for Your Stocks

Choosing a Stock Broker and Brokerage Firm for Your Stock Investments

It's difficult to begin investing in stocks without a stock broker. This complete guide to choosing a stock broker and brokerage firm should make the process easy and enjoyable. More