Stock Under $10 with 50-100% upside potential - 14 Days FREE!
How to Invest in Stocks

How to Invest in Stocks

A Beginner's Guide to Stock Investing

Stocks are an equity investment that represents part ownership in a corporation and entitles you to part of that corporation's earnings and assets.

Common stock gives shareholders voting rights but no guarantee of dividend payments. Preferred stocks provides no voting rights but usually guarantees a dividend payment.

In the past, shareholders received a paper stock certificate -- called a security -- verifying the number of shares they owned. Today, share ownership is usually recorded electronically, and the shares are held in street name by your brokerage firm.

Investing in stocks can be tricky business. In fact, it's best to treat all of your investment pursuits as a business. Heck, that's what Benjamin Graham (Warren Buffett's stock market mentor) recommended.

Before you buy your first stock, you should master the basics of stock investing. This won't make you a great investor overnight, but only when you understand the fundamentals of investing can you learn how to invest in stocks with confidence.



If you found this content useful, please share it. This will help us create more educational guides for investors.

What Are Stocks?

Basic Stock Terms for Beginners

How to Buy Your First Stock

Stock Analysis for Beginners

How to Analyze Stocks

How to Value Stocks

Investing in Foreign Stocks

Investing in Dividend Stocks

Investing in Penny Stocks

Stock Investing Strategies

Learn More About Stocks

Investment Ideas

Article
By Jonas Elmerraji
These five stocks look like conviction buys in BRK's portfolio right now -- not just position increases.
5/22/13 11:07AM
Article
By Stan Luxenberg
Dividend-stock ETFs may not be as safe as many shareholders think. A good alternative right now is mega-cap funds.
5/22/13 9:41AM
Article
By Jonas Elmerraji
As the broad market peeks up into overbought territory for the second time in this rally window, we could be due for a correction.
5/21/13 11:00AM
Article
By Jonas Elmerraji
These stocks have both short-term gain catalysts and longer-term growth potential.
5/20/13 10:40AM
Article
By Jonas Elmerraji
Here's a look at how to trade some of the most active stocks on the market today.
5/17/13 2:33PM
Article
By Jonas Elmerraji
Here's a look at how to trade some of the most active names on Wall Street today.
5/17/13 2:27PM
Article
By Jonas Elmerraji
These dividend stocks look ready to boost their dividend payouts to shareholders this quarter.
5/17/13 10:53AM
Article
By Stan Luxenberg
China has slowed, but the Philippines and Thailand are still growing.
5/16/13 11:17AM
Article
By Jonas Elmerraji
There's still a lot of upside left in this market, creating some serious trading opportunities in Wall Street's biggest stocks.
5/16/13 7:00AM
Article
By Jonas Elmerraji
Short sellers are piled into these stocks right now, making them prime candidates for a short squeeze in 2013.
5/15/13 11:15AM
Article
By Jonas Elmerraji
In spite of a broad market rally that's sent the S&P 500 around 15% higher in 2013, some stocks look toxic right now.
5/14/13 11:10AM
Article
By Jonas Elmerraji
These stocks have both short-term gain catalysts and longer-term growth potential.
5/13/13 10:56AM
Article
By Stan Luxenberg
Cut taxes and get decent returns with low-cost 529 programs.
5/13/13 10:22AM
Article
By Jonas Elmerraji
These stocks can achieve significant growth but still have a fundamental backstop in their current balance sheet or earnings numbers.
5/10/13 12:30PM
Article
By Stan Luxenberg
These ETFs beat the S&P 500 while providing rich income.
5/10/13 10:32AM

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
TRY IT FREE

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
Dividend Stock Advisor
TRY IT FREE
New! $49.95/yr

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Stocks Under $10
TRY IT FREE

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Real Money
TRY IT FREE

24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.

Product Features:
  • Jim Cramer + 20 Wall Street pros
  • Intraday commentary & news
  • Real-time trading forum
  • Actionable trade ideas
Real Money Pro
TRY IT FREE

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass + 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
TRY IT FREE

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
DOW 15,307.17 -80.41 -0.52%
NASDAQ 3,463.30 -38.82 -1.11%
S&P 500 1,655.35 -13.81 -0.83%
US 10 Yr 2.026% +0.082

Brokerage Partners
Advertising Partners

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

We respect your privacy.
Manage Newsletters

Top Rated Stocks Top Rated Funds Top Rated ETFs