Investing Basics — A Quick Start

Understand the stock market, core terms, and foundational strategies like diversification and dollar-cost averaging.

FoundationsRisk ManagementETFs

What is the Stock Market?

It’s a marketplace where ownership shares of companies are bought and sold. When you buy a stock you own a slice of a company; your return depends on how the business and the broader market perform.

  • Stock: a share of ownership.
  • Dividend: a portion of profits paid to shareholders.
  • Bull/Bear market: extended periods of rising/falling prices.
  • ETF: a fund that trades on exchanges and typically tracks an index.

Getting Started

  • Clarify goals (short-term vs long-term).
  • Pick a risk budget and stick to it.
  • Diversify across asset classes and sectors.
  • Prefer systematic rules; avoid emotional trades.

Dollar-Cost Averaging (DCA)

Invest a fixed amount at regular intervals regardless of market moves. It smooths entry price and can reduce timing risk—useful for long-term portfolios.

Educational only. Evaluate fees, taxes, and suitability.

ETFs in One Minute

Exchange-traded funds hold baskets of assets and trade intraday like stocks. Most track indexes; some are active; a subset use leverage or derivatives. Understand tracking error, fees, and liquidity.

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Notes: ETF definitions and investor education aligned with SEC Investor.gov & FINRA guidance; mechanics and creation/redemption processes are covered by CFA Institute primers. Educational content only, not investment advice.