Stock Market Basics: Everything You Wish School Had Taught You

Stock Market Basics: Everything You Wish School Had Taught You

Let’s face it — most of us left school knowing how to dissect a frog but not how to grow our money. The stock market seemed like something only finance bros and Wall Street types understood.

But here’s the truth: the stock market isn’t that complicated — and it’s one of the best tools for building long-term wealth.

Let’s decode the basics:

🧠 What Is the Stock Market?

Think of it as a giant marketplace where people buy and sell ownership in companies — these ownership pieces are called stocks or shares.

When you own a share of a company like Apple, you own a tiny slice of that business.

💡 Why Do Companies Sell Stock?

To raise money.
Instead of taking a loan, companies “go public” and let regular people invest in them. This money helps them grow — and if they succeed, you benefit too.

💸 How Do You Make Money?

1. Capital Gains – Buy low, sell high.

2. Dividends – Some companies share profits with you just for holding their stock.

📊 What Are Indexes Like the S&P 500 or Nifty 50?

These are just collections of top companies used to track how a part of the market is doing.
If you invest in the S&P 500, you’re investing in 500 major US companies at once.

🛠️ Basic Terms You Should Know

• Stock = ownership in a company

• Bond = loaning money to a company or government

• ETF = a basket of stocks you can buy, like a bundle

• Bull Market = prices rising 🐂

• Bear Market = prices falling 🐻

📉 Isn’t the Market Risky?

Yes — but not if you’re in it for the long run.
Markets go up and down in the short term, but historically, they always grow over time. The real risk? Not investing at all.

⏳ When Should You Start?

Now.
The earlier you invest, the more time your money has to grow thanks to compound interest — aka interest earning interest. It’s the closest thing to magic in finance.

🧘‍♂️ Final Tips for Beginners

• Don’t try to time the market — just stay in.

• Invest in index funds or ETFs to start.

• Focus on the long term, not daily ups and downs.

• Learn as you go. You don’t need to be an expert on day one.

💬 Bottom Line:

Best regards

The Daily Chain