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.


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.

RangeStock ValueAnalysis
Nano Cap< $50mHighly Risky
Micro Cap< $250mHighly Risky
Small Cap$250m – $1bPotential growth
Mid Cap$1b – $10b Safety investing and potential growth
Large Cap$10b – $50b Conservative stock investors
Greater safety
Ultra Cap> $50bBiggest of the big eg. Apple, Google

Read More:

Dollar Cost Averaging

Price to Earning Ratio

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