The stock market is a fast moving and interesting place where fortunes can be made and lost in moments. Getting to know how the stock market works and how to invest is important for anyone looking to save for long term goals. Here are fourteen awesome articles to help you learn more about the stock market. The first seven are from me, the others are from great writers around the personal finance blogging community.
The stock market is the most well-known place to invest. It is fast paced. It is glamorous. Millions of dollars are made and lost every minute the market is open. It can be intimidating to get started, but once you get a grasp on how it works, you will understand why there is no reason for you to be afraid to invest in the stock market and get your fair share of the gains.
Almost everyone knows that you can buy and sell stock in a company, but a lot of people don’t fully understand what a share of stock represents.
Every time I need to buy or sell a stock, mutual fund, or index fund, I hop online and enter the trade on my brokerage website. It wasn’t always this easy to invest and we are lucky to live in an age of cheap, online investing.
Over the last few years, we have seen unprecedented volatility in the stock market. The S&P 500 has rocketed to from 800 to 1500 and back more than once over the last 15 years. For the best odds of long term gains, it is important to make smart investment decisions and build a diverse portfolio.
I recently wrote a post explaining why dividend stocks may not be all they are cracked up to be. Unless you are in retirement, non-dividend stocks may be better than ones that pay out a dividend. Reader Michael, who blogs at Student Loan Sherpa, asked an excellent question about trying to game the dividend system.
A couple of weeks back, I explained what a share of stock represents. Today, I am going to explain another complicated investment scenario: stock splits.
An IPO, or initial public offering, is the event that brings a company into the stock market. When an IPO takes place, investors are able to buy the company’s stock on a major market, such as the New York Stock Exchange or NASDAQ. There are many reasons for a company to go through the IPO process, or avoid an IPO, and the mechanics of the process are fairly complex.
Dividend stock investing is a great source of passive income. The problem is, with dividend yields relatively low at 2-3% you need a lot of capital to generate any sort of meaningful income. Even if you have a $500,000 dividend stock portfolio yielding 3% that’s only $15,000 a year.
Investing can be complicated if you let it be. There are a million different concepts, strategies, and funds to think about. And that’s okay for some, but not for most. Most people are turned off by investing and never really get into it because of the multitude of choices. With that in mind, here is some simple information to help you frame your approach to investing.
How to Make Money in the Stock Market – Mr. Money Mustache
I must admit my title for this article sounds scandalous and scammy, like something a Las Vegas-based email spam company would send out. But it’s also completely accurate, because I really can teach you the best way to make money from the stock market all in one short blog post.
If Budgets are Sexy, the Stock Market Must Be Smoking Hot! – Budgets are Sexy
Don’t get me wrong, budgets are definitely attractive on their own merit, but if you were to line them up side-by-side next to stocks, it would be like comparing the attractiveness of Al Pacino to the attractiveness of Megan Fox. I mean, sure, Al Pacino is a rather cool and attractive old man but not many guys would give up one of their testicles to spend a night with him (see: Megan Fox).
Six Steps for a Beginning Stock Investor – The Simple Dollar
Once a person has their debt under control, the next thing that they want to do with their money is figure out ways to maximize it, and most of the time the potential gains of the stock market look like a great place to put money.
Should I Risk Money in the Stock Market? – Get Rich Slowly
Before you begin to answer the question, “Should I risk money in the stock market?” you should first assess your investment goals, needs and risk tolerance using this series of questions.
Warren Buffet’s 2012 Letter to Shareholders – Berkshire Hathaway
What list of stock market knowledge would be complete without input from the Oracle of Omaha? Warren Buffet’s annual investor letters are one of the most amazing places to find a wealth of knowledge and insight about the economy and stock market, along with gems about management and his own Berkshire Hathaway companies. This is the most recent installment.
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