Investing 101
A Beginner's Guide to the Basic Concepts and Terminology of Investing

First Share’s slogan “from one comes many” is meant to convey the fact that, regardless of how much money one has to invest, anyone can turn their first share into a solid investment portfolio over time by following three simple rules:

  1. Invest Consistently: Invest on a regular basis regardless of what the overall stock market is doing. This is referred to as Dollar Cost Averaging and results in the investor acquiring more shares of a stock when the price is depressed and fewer shares of a stock when the price is high.
  2. Diversify: You’ve heard the saying, “don’t put all of your eggs in one basket.”  It also applies to investing.  It’s important that you own a basket of different stocks in different industries to limit the potential downside to your portfolio if one of those “eggs” should break.
  3. Reduce Costs: This is why First Share was created, to help investors purchase stocks while avoiding excessive brokerage fees and commissions.  The average retail investor – that’s you – trades stock once a month.  If you assume that each trade costs $10 that’s $120 per year.  If you could avoid those fees and, instead, invest them, then in 10 years that $120 could be worth almost $260.  This can add up to a significant amount over time.

We’ve put together a list of basic concepts and terminology that we refer to as A Beginner’s Guide to the Basic Concepts and Terminology of Investing. While this guide itself won’t make you the next investing guru, it will help you to build a solid base for future learning and we’ll be here to help.

Just remember, the road to wealth starts with your First Share!

Basic Concepts of Investing with Stocks

Overview


Investment Strategies


Understanding Valuation Ratios

Basic Concepts of Investing with Bonds

Overview


Types of Bonds

Investing with DRIPs and DPPs

Overview

Understanding the Economy and its Effect on the Stock Market

Overview

Investor Glossary:

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