A Three Minute Guide to Understanding Stocks
Head over to the Investing for Beginners site at About.com, a division of The New York Times, to see my newest special. It started because last week, I sat down to create an updated version of The Beginner’s Corner, which answered basic questions such as “what is the ask price and bid price of a stock?” and “what does a market maker do?”. As I kept writing answers to the questions I’d received from readers over the years, what started as a brief update turned into a week-long project that culminated in a new feature called 101 Things Every Investor Should Know About Stocks and the Stock Market.
This new special contains more than a hundred pages of content, each answering a specific question in only two or three sentences with links to additional information if you want to learn more. You can click through it in under 3 minutes if you want the brief version. This alone should put you years ahead of where most investors are because you’ll be able to answer questions such as, “What is the Dow Jones?” and “What is private equity? Or a hedge fund?” Do yourself a favor and become educated on the 101 things that every investor should know. It could help lay the groundwork for a much better understanding of the rich, robust collection of articles you’ll find on the site after you’ve finished.

The special on investing in stocks and the stock market was designed for complete beginners that have absolutely no idea what things such as "assessable stock" or bid and ask spreads are. It lays the foundation for understanding the stock market so it's not overwhelming when you are confronted with these terms at your broker's office.


