stockedIn.
Sign in
All chapters

How the stock market works

Exchange, bid/ask, market value, indices and dividends.

Advanced5 lessons

Lessons in this chapter

  1. 1How does the stock market work?The stock market is a giant marketplace where buyers and sellers of shares come together.6 min read
  2. 2Bid, ask & spreadBehind every quote there are two prices: the bid price and the ask price. The difference is the spread.6 min read
  3. 3Market capitalizationA high share price doesn't mean 'expensive' or 'big'. Market capitalization tells you how big a company really is.5 min read
  4. 4Indices: what they measureAn index measures in a single number how a basket of shares is doing. The foundation of index investing.6 min read
  5. 5Dividends explainedSome companies share a piece of their profit with shareholders. That's called a dividend.6 min read

Want to practise, not just read?

Stockedin teaches investing in short lessons, with €10,000 in demo money to make your mistakes with. Stocky, the AI coach, explains anything you get stuck on.

Download on the App Store
How the stock market works