Start Here: A Reading Path for Understanding the Market
You don't need a finance degree to understand why a stock moves. Read these in order and you'll be able to look at almost any chart and ask the right questions.
1. What a stock price is
Start with What moves stock prices?, then learn to read the picture itself in How to read a stock chart. Finish with Market cap and dilution, which explains why share price alone tells you nothing about size.
2. Where the numbers come from
Read How to read an earnings report and How to read a 10-K and 10-Q. These are the primary sources behind every headline.
3. Is it cheap or expensive?
The P/E ratio explained and Discounted cash flow, explained show how analysts compare price with value.
4. Getting paid to own it
How dividends work, Is the dividend safe? and How dividends are taxed.
5. The tides that move everything
How interest rates move the stock market and Corrections, bear markets and the business cycle.
6. Options, carefully
Only after the basics: What are options?, Covered calls and The risks most beginners miss.
Practice
Pick one company you know as a customer. Work through it with the free worksheet, and run its numbers in our calculators. Keep the glossary open in another tab.
Free download: Stock Research WorksheetTwo pages: the business, the numbers, the risks and your decision rules. (PDF)