Stock Basics

One of the stock market basics is to open a brokerage account to invest in the stock market. A brokerage account allows you to buy, sell, and hold stocks.
You must deposit money into your account to buy shares through your brokerage account. Make sure to review the fees and other benefits various brokerage firms offer before opening an account.

The stock market is where the buyers and sellers of stocks come together to make trades. The stocks are traded on large exchanges like NYSE, NASDAQ, or OTC markets.
The stock prices are determined through the supply and demand of the stocks. When more people want to buy stock, the price increases; when more people want to sell a stock, its price decreases.

A stock split occurs when the company divides its existing shares into multiple new shares to reduce the share price. It is mostly done to lower the share price, making the shares accessible and affordable for more investors.

The bull market is when the investors’ sentiment is optimistic about the stock market, and the prices are incrementally rising.
A bear market is when the investors’ sentiment is pessimistic, and the stock prices are rapidly declining.

There are two types of stocks – Common Stocks and Preferred Stocks.
Common stocks come with ownership and voting rights in the company.
Preferred stocks do not grant investors voting rights but offer priority in receiving assets and dividends in case of liquidation.