If you’re new to investing, the concept of stocks can seem a little scary. What exactly are they? And what are the risks — and rewards — of purchasing them?
In a nutshell, when you buy a share of stock, you become part owner of a company. That means you have a financial stake in the ups and downs of the business.
But there is so much more to know before you invest. Watch this Khan Academy video, and you’ll learn about many aspects of investing, including:
- How stocks differ from bonds
- The definition of assets and liabilities
- How concepts such as book value can indicate whether a stock is worth buying
For more investing advice, check out:
- “11 Tips for Sane, Successful Stock Investing“
- “Ask Stacy: How Do I Invest in the Stock Market?“
- “11 Pointers for Investing in Your 60s and Beyond“
Do you have any tips for beginning investors? Share them by commenting below or on our Facebook page.