Jump links: Stock-Market Basics • Opening Accounts • Building a Portfolio • Strategies & Tips • Fees & Taxes • Resources
Stock-Market Basics for Beginners
The stock market is where companies raise capital and investors buy shares hoping the price and dividends increase over the long term. Each stock represents partial ownership in a company, giving every shareholder the rights to vote and receive a slice of future earnings. For beginners, learning the basics—revenue, debt, and profit margins—helps separate high-quality assets from speculation.
Opening a Brokerage Account
Discount brokers like Fidelity or Schwab offer commission-free trading, fractional-share purchases, and robust research tools. Compare account fees, services, and access to ETFs, bonds, and retirement plans. Fund via bank transfer and keep emergency money separate from investment funds.
Building a Beginner Portfolio
New investors often start with index funds tracking the S&P 500. Layer in dividend-paying blue-chip stocks for steady income. Diversify across sectors—tech, healthcare, consumer goods—to reduce risk.
Strategies & Tips
Dollar-cost averaging smooths entry price over time. Reinvest dividends automatically, and avoid emotional decisions based on short-term market swings. Keep focused on long-term goals.
Fees, Taxes & Risk Management
Low-expense funds cost under 0.10 %. Minimize short-term capital-gains taxes by holding at least one year. Maintain a cash reserve and adjust allocation as risk tolerance or life circumstances change.
Further Resources
Explore our Dividend guide and Day Trading overview. Still have questions? Reach us via the Contact page for personalized advice.