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StocksBeginner12 lessons · about 58 min

Stock Basics

Start from "what is a stock?": brokers, deposits, buying, selling, unrealized P&L, profit, dividends and IPOs, one animation at a time.

For: complete beginners who have never touched stocks

  1. 1

    What Is a Stock?

    No sign-up needed

    Slice a company into many small pieces and each piece is one share. Buy shares and you own a small part of the company.

  2. 2

    What Is a Broker?

    Text version

    Ordinary people can't walk into an exchange and buy stocks. A broker is the middleman that opens your account, sends your orders and holds your shares.

  3. 3

    Deposits and Withdrawals

    Text version

    Moving money from your bank into your brokerage account is a deposit; moving it back is a withdrawal. You need money in the account before you can buy.

  4. 4

    What Is Buying?

    Text version

    Buying means swapping cash for shares. Your cash goes down and your shares go up, but at the moment you buy, your total assets don't change.

  5. 5

    What Is Selling?

    Text version

    Selling means turning the shares you hold back into cash. In a regular account you can only sell shares you already own.

  6. 6

    Why Do Stock Prices Move?

    Text version

    More eager buyers push the price up; more eager sellers push it down. A tug-of-war that explains supply and demand.

  7. 7

    Unrealized Gains and Losses

    Text version

    While you hold a stock, your P&L moves every time the price moves. Until you sell, it's only a number on paper.

  8. 8

    What Is Profit?

    Text version

    Sale proceeds minus purchase cost, minus fees: what's left is the profit that actually lands in your pocket.

  9. 9

    Adding to a Position and Average Cost

    Text version

    If you buy in several rounds at different prices, what did you really pay? Your average cost decides when you break even.

  10. 10

    Practice: One Complete Trade

    Text version

    Put it all together: watch the market, buy, hold, sell, and see how much you end up making.

  11. 11

    Dividends and Ex-Dividend Dates

    Text version

    When a company pays a dividend, the price is "cut" by that amount on the ex-dividend date. See why a dividend isn't free money, and why bonus shares don't change total value.

  12. 12

    IPOs: How a Company Goes Public

    Text version

    A company's first sale of shares to the public is an IPO. Tell the primary market from the secondary market: only the money raised at issue goes into the company's pocket.

Stock Basics: 12 animated lessons · 72lab