Stock Beginners Guide
What is Stock?
Ownership share in a company.
What is investment?
An asset or item purchased that will appreciate in the future, generate income or sold at a higher price.
With money you can buy shares, bonds, mutual funds or do fixed deposit.
Inflation
When cost of living increases (prices of goods and services increases).
Dividend – share of profits paid out to shareholders
Market Capitalization Analysis
Price * No of shares outstanding = total value of all of the stock outstanding.
| Range | Stock Value | Analysis |
| Nano Cap | < $50m | Highly Risky |
| Micro Cap | < $250m | Highly Risky |
| Small Cap | $250m – $1b | Potential growth |
| Mid Cap | $1b – $10b | Safety investing and potential growth |
| Large Cap | $10b – $50b | Conservative stock investors Greater safety |
| Ultra Cap | > $50b | Biggest of the big eg. Apple, Google |
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