Major Exchanges and How Prices Work

The NYSE is the largest exchange by market capitalization of listed companies NASDAQ is fully electronic and home to many technology and growth companies Prices are set by supply and demand — company earnings and sentiment drive demand Short-term prices reflect sentiment; long-term prices track business fundamentals

Order Types Explained

Market orders execute immediately at the best available price — fast but price uncertain Limit orders set a maximum buy or minimum sell price — price guaranteed, execution is not Stop-loss orders trigger a market sell if the price falls to a specified level Stop-limit orders combine a trigger price with a limit for more control

Market Hours, Settlement, and Indices

Regular US market hours are 9:30 AM to 4:00 PM Eastern, Monday through Friday Stock trades settle on T+1 — one business day after the trade date The S&P 500 tracks 500 large US companies and is the most widely followed benchmark You cannot invest directly in an index — index funds and ETFs replicate their performance

Bull Markets, Bear Markets, and Market Cap

A bull market is a sustained 20%+ gain from a low; a bear market is a 20%+ decline Bear markets have historically lasted 9-16 months on average before recovery Market cap equals share price times shares outstanding — it measures total market value Large-cap (over $10B), mid-cap ($2-10B), and small-cap (under $2B) behave differently

How to Open a Brokerage Account

Major online brokers offer commission-free stock and ETF trading with no minimums You will need your Social Security number, government ID, and bank account to fund it Choose between a taxable brokerage account and tax-advantaged accounts like IRAs Compare platforms on research tools, customer service, and available investment options

Common Mistakes for Beginners

Trying to time the market — time in the market has historically beaten timing Concentrating in a single stock or sector instead of diversifying broadly Panic selling during downturns — bear markets are normal and recoveries always follow Ignoring fees, taxes, and the impact of frequent trading on long-term returns

Stock Market Basics: How It Works and How to Get Started

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What the Stock Market Is

The stock market is a network of exchanges where shares of public companies are traded
Buying stock means owning a small piece of a company and its future earnings
Markets provide liquidity — the ability to convert investments to cash relatively quickly
Most investors never interact directly with exchanges — brokers route orders on your behalf

Public Markets Private Markets Direct Indexing

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What the Stock Market Is

Major Exchanges and How Prices Work

Order Types Explained

Market Hours, Settlement, and Indices

Bull Markets, Bear Markets, and Market Cap

How to Open a Brokerage Account

Common Mistakes for Beginners

Related Topics

Index Fund Investing

Small and Mid-Cap Investing: Sizing Up Opportunity

How to Start Investing: A Beginner's Step-by-Step Guide

What the Stock Market Is

Major Exchanges and How Prices Work

Order Types Explained

Market Hours, Settlement, and Indices

Bull Markets, Bear Markets, and Market Cap

How to Open a Brokerage Account

Common Mistakes for Beginners

Related Topics

Index Fund Investing

Small and Mid-Cap Investing: Sizing Up Opportunity

How to Start Investing: A Beginner's Step-by-Step Guide