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Stock Market Basics: What Beginner Investors Should Know

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If you’re not well-versed on the basics of the stock market, the words and numbers spewed from CNBC or the markets section of your favorite newspaper can border on gibberish.

Phrases like “earnings movers” and “intraday highs” don’t mean much to the average investor, and in many cases, they shouldn’t. If you’re in it for the long term — with, say, a portfolio of mutual funds geared toward retirement — you don’t need to worry about this lingo, or about the flashes of red or green that cross the bottom of your TV screen. You can get by just fine without watching the market much at all.

But if you’re interested in trading stocks, you need to start with some basic knowledge about how the stock market works.

Stock market basics

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