Learn to Invest

Diversification spreads your money across different investments so no single one can sink you. Learn how it works and what it cannot do.

Dollar-cost averaging means investing a fixed amount on a schedule. See how it works with a worked example and what its trade-offs are.

Compounding means earning returns on your earlier returns. See the math with simple examples and learn why time matters more than most people think.

A brokerage account lets you buy stocks, ETFs and funds. Here is what to compare, what you will need to open one, and how orders work.

Asset allocation is how you split money among stocks, bonds and cash. Rebalancing keeps that mix on track. Here is how both work.

An IRA is a tax-advantaged account for retirement savings. Learn how it works, what you can hold inside it and how it differs from a 401(k).

Roth and traditional IRAs differ in when you pay tax. See how each works, a side-by-side example and the questions that help you decide.

A 401(k) is a retirement account offered by employers. Learn how contributions, the employer match, vesting and investment choices work.

When you sell an investment for more than you paid, you may owe capital gains tax. Learn short vs long term, cost basis and ways to manage it.

A bond is a loan you make to a government or company. Learn face value, coupon, maturity, yield and the main risks.

Bond prices and interest rates move in opposite directions. A worked example, plus what duration means.

US Treasury securities are loans to the federal government. Learn the differences between bills, notes, bonds, TIPS and I bonds.

Risk is the chance your investment does worse than you hoped. Learn the main types of investment risk and how investors manage them.

Risk tolerance is how much loss you can stomach and afford; time horizon is how long until you need the money. Learn how they shape a portfolio.

An exchange-traded fund (ETF) is a basket of investments you buy and sell like a single stock. Here is how ETFs work, what they cost and where they fit.

Index funds track a market index instead of trying to beat it. Learn how they work, why they are cheap, and what the S&P 500 really is.

The expense ratio is the yearly fee a fund charges. See how a small difference in fees can add up to thousands of dollars over decades.

The price-to-earnings ratio compares a stock’s price to the company’s profit. Learn what a high or low P/E means and where it can mislead you.

Public companies report results every quarter. Learn what EPS, revenue, a “beat” and guidance mean, and why a stock can fall on good news.

Dividends are cash payments companies make to shareholders. Learn how yield and payout ratio work and why a very high yield can be a warning sign.

Market capitalization is the total value of a company’s shares. Learn how it is calculated and why size matters for risk and return.

A balance sheet is a snapshot of what a company owns and owes. Learn the parts, the key ratios and where to find one.

The income statement shows a company’s revenue, costs and profit over a period. Learn each line, margins and how EPS is built.

Free cash flow is the cash a company has left after running and maintaining its business. Learn how to calculate it and why investors watch it.

What bull and bear markets are, how corrections differ from crashes, and how long-term investors think about market declines.

Why markets watch the Federal Reserve so closely. A plain-English look at how interest rates influence stocks, bonds and sectors.

The stock market is divided into 11 sectors, from technology to utilities. Learn what each one covers, how they behave, and how to compare them.

Learn the basics of price charts: line vs candlestick, volume, time ranges, moving averages, support and resistance, and what charts cannot tell you.