Stock Market Basics To better understand how the stock market works, it helps to understand these basic concepts. Stocks vs. Bonds Two popular investment types you can choose include stocks and bonds.

Taking control of your portfolio means knowing what stock orders to use when buying or selling stocks. This knowledge is at ...

4. Be prepared for a downturn The hardest issue for most investors is stomaching a loss in their investments. And because the stock market can fluctuate, you will have losses occur from time to time.

So, a $10 stock yielding a 20-cent annual dividend would have a 2% yield. If you put that 20 cents back into your original investment, giving you $10.20, you’ve made a 2% return.

It is composed of some of the largest companies from different sectors or areas of the stock market. Again when the S&P 500 goes up, that means the collective price of these 500 companies went up.

Among stock market basics, one of the toughest decisions you'll need to make as an investor is determining what your risk tolerance is. If you're younger you're more liable and willing to take ...

The stock market is really a kind of aftermarket, where people who own shares in the company can sell them to investors who want to buy them. This trading takes place on a stock exchange, such as ...

So, a $10 stock yielding a 20-cent annual dividend would have a 2% yield. If you put that 20 cents back into your original investment, giving you $10.20, you’ve made a 2% return.

1. Bull market vs. bear market These are perhaps the two most common terms thrown around when discussing the stock market, but that doesn't mean prospective investors truly understand what they mean.

So, a $10 stock yielding a 20-cent annual dividend would have a 2% yield. If you put that 20 cents back into your original investment, giving you $10.20, you’ve made a 2% return.