Investing foundations
Understand what investments are, how ownership works and how markets connect buyers and sellers.
Browse the full library →What Is a Stock?
A stock represents an ownership interest in a company. Its price is what buyers and sellers currently agree to exchange that interest for; ownership does not promise a dividend, a fixed repayment or a profit.
Concept explained · BeginnerWhat Is a Bond?
A bond is a debt security. Its issuer borrows money under stated terms that may include interest payments and repayment of principal at maturity. Those promised payments are subject to the issuer’s ability to pay and the bond’s specific conditions.
Concept explained · BeginnerWhat Is an ETF?
An exchange-traded fund pools investor money into a portfolio and issues shares that trade on an exchange. The wrapper tells you how it is held and traded; the holdings and strategy tell you what risks it takes.
Concept explained · BeginnerWhat Is a Market Index?
A market index is a rules-based measurement of a selected group of securities. It summarizes a defined basket rather than every investment in the world, and its weighting and return rules shape the result.
Concept explained · BeginnerWhat Is Market Capitalization?
Market capitalization is a company’s share price multiplied by its outstanding shares. It measures the market value of equity, not the sticker price of one share or the total cost of acquiring the whole business.
Concept explained · BeginnerOrders, Spreads and Liquidity
An order specifies how a broker should try to buy or sell a security. A market order prioritizes execution, while a limit order sets a price condition. Liquidity determines how readily trading can occur without a large price impact.