Understanding stock market basics is essential to trading success. Whether you're a new trader or need a refresher, understanding the stock market is key.

1. STOCK
MARKET
BASICS

2. WHAT IS
THE STOCK
MARKET?
The stock market is
the market in which
shares of publicly held
companies are issued
and traded either
through exchanges or
over the-counter
markets.

3. $36.6
trillion USD at the beginning
of October 2008
The size of the world stock market
was estimated at

4. SHARE/STOCK SHAREHOLDER
Shares represent a
fraction of
ownership in a
business.
Ownership of shares
is documented by a
legal document.
These days these
stock certificates
have been
dematerialized.
An individual or
company that legally
owns one or more
shares of a
company.
Shareholders very
from individual stock
investors to large
hedge fund traders.

5. WHY DO
THEY ISSUE
SHARES?Companies may want
additional capital to
invest in new projects.
The promoters may
simply wish to reduce
their holding, freeing up
capital for their own
private use.

6. WHY
SHOULD
YOU
INVEST?

7. Protection
against inflation!
$1 = 60¢TODAY 20YRS. AFTER
If we don’t beat the
inflation rate we’re
actually losing
money, not making
money.
1

8. "The key to making
money in stocks is
not to get scared
out of them."
W A R R E N B U F F E T T

9. THINGS TO
KNOW
Buy Low, Sell High
There is No Such
Thing as a Sure Thing
Get Familiar with
Filings
Think Long Term
Dividens Are Your
Friend
A $100 Stock Isn’t
Expensive And A $5
Stock Isn’t Cheap
There Is No Perfect
Metric
Taxes Can Take A Bite
Out Of Your Profits

10. HAPPY INVESTING!
HAPPY SAVINGS!