Fundamental investing begins with understanding how markets and basic investment concepts work. This category is designed for beginners who want a clear, structured introduction to investing.
You’ll learn how the stock market works, how to buy and sell stocks, and how to distinguish between investing and speculation.
Topics include stock market basics, investment strategies, and index fundamentals such as the S&P 500 and Nasdaq.
The Russell 2000 is an index managed by FTSE Russell, which consists of companies with smaller market capitalization and is thus considered a “small cap” index. The term “small cap” is somewhat of a misnomer. Although there is no official definition, in the investment industry the term “small cap” generally refers to companies with market
The Russell 2000: Understanding Stock Indices Read More »
Unlike the other indices, (S&P 500 and Dow Jones Industrial Average), the NASDAQ Composite Index consists only of stocks that trade on the NASDAQ. A brief review of the NASDAQ exchange is thus a good place to start. New to investing? Start with our guide to fundamental investing. Brief History of the NASDAQ In 1938,
The NASDAQ Composite Index: Understanding Stock Indices Read More »
What Is the Dow Jones Industrial Average? In 1896, Charles Dow and his associate, statistician Edward Jones, both co-founders of the financial publishing firm Dow Jones and Company, created an index of industrial companies. This index was the second stock market index ever created, as Dow had created a transportation index twelve years earlier. How
The Dow Jones (DJIA): Understanding Stock Indices Read More »
Before diving into the S&P 500, it’s worth taking a step back to understand what a stock index really is and why it matters. From how they’re constructed to what they actually represent, indices form the foundation of nearly every market conversation — and every investor’s frame of reference. If you’re new to investing, start
The S&P 500: Understanding Stock Indices Read More »
Call me old-fashioned, but I believe that words matter. In the world of finance, the terms investment and speculation are often blurred. We frequently use “investment” as a catch-all to describe any outlay of money made in the hope of future profit. I’m as guilty as anyone of using it in this overly broad sense.
Investment vs. Speculation: Investing Defined Read More »
