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Financial encyclopedia

Getting started

What a share is, how the stock market works, how to open an account and place your first order.

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What is a share?

A share, also called a stock, is a small piece of ownership in a company. When you buy one, you become a part-owner and take part in the fortunes of the business.

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How a stock exchange works

The stock market is where shares in companies are bought and sold. It brings buyers and sellers together and sets a price for each company based on what people are willing to pay.

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Stocks vs. ETFs and funds

A fund pools money from many investors and spreads it across a large number of holdings. It lets you own a slice of hundreds or thousands of companies at once, without buying each one yourself.

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Asset classes

An asset class is a broad category of investment that behaves in a similar way. Knowing the main types helps you understand what you own and how a portfolio is put together.

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Your first steps

Before putting money into investments, it is wise to have a stable financial base. Investing works best when you are not forced to sell at the wrong time to cover an emergency.

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Time horizon and risk tolerance

Your time horizon is how long you expect to leave your money invested before you need it. It is one of the most important factors in deciding how to invest.

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Fees and costs

Every charge you pay to invest is taken from your returns. Small percentages may look harmless, but over many years they can consume a large share of your gains.

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Avoiding scams and unrealistic returns

Investment scams often succeed by promising high returns with little or no risk. Learning to spot the warning signs protects both your money and your peace of mind.

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How to open a brokerage account

To buy shares you need an account with a broker - a bank or an online platform that sends your orders to the stock exchange and keeps your shares safe.

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Order types: market, limit and stop orders

A market order buys or sells right away at the best available price; a limit order only trades at your price or better; a stop order triggers when the price reaches a level you set.

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How to use a stock screener

A stock screener filters thousands of listed companies down to the few that match numbers you choose, such as growth, dividend yield or valuation.

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