What is a Stock?
A share in a company. Price movements depend among other things on expectations, earnings, interest rates, and market sentiment. Profits are not guaranteed.
Fundamental Knowledge (Informational)
This content is intended to help understand stocks and indices. It does not replace individual advice and contains no recommendations.
Index Basics
An index bundles multiple stocks (e.g., S&P 500, Dow Jones). It serves as a barometer, but is no guarantee for future developments.
Diversification
Spreading across sectors/regions can reduce risks but not eliminate them. Even diversified portfolios can suffer losses.
Understanding Risk
Price losses, volatility, liquidity bottlenecks, and company risks are part of stock investments. Long-term horizon and realistic expectations are crucial.
- Market RiskBroad influences (economic cycle, interest rates, politics) can push prices down.
- Individual Stock RiskCompany profits/losses directly affect the stock.
- LiquidityLower trading volumes can lead to wider spreads.
Education supports understanding but does not replace individual licensed advice. Losses up to total loss are possible.