The diversity of the US equities market continues to draw investors to trade and invest in stock exchanges such as the Nasdaq. You can access stocks of all sizes which operate across a range of sectors and offer potential for capital growth or income generation, bearing in mind that investment values can fall as well as rise.
What have you learned?
We have covered how equities work, how stock exchanges have built-in operational safeguarding structures to ensure market integrity, and how stocks come to be listed on a stock exchange through an IPO. We’ve also established that the price data provided by exchanges can be used to help you make well-informed trading decisions.
We’ve also explored the PE and PEG ratios which are crucial building blocks in the stock valuation process and offer an immediate view on the prospects of a stock.
Understanding the mechanics of how stock exchanges work and keeping up to date with developments in individual stock prices puts you well on your way to potentially achieving your financial goals and building a stock portfolio.
Test your Knowledge
QUESTION 1 OUT OF
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. Past performance is not an indication of future results.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 61% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
This information is for educational purposes only and should not be taken as investment advice, personal recommendation, or an offer of, or solicitation to, buy or sell any financial instruments.
This material has been prepared without regard to any particular investment objectives or financial situation and has not been prepared in accordance with the legal and regulatory requirements to promote independent research. Not all of the financial instruments and services referred to are offered by eToro and any references to past performance of a financial instrument, index, or a packaged investment product are not, and should not be taken as, a reliable indicator of future results.
eToro makes no representation and assumes no liability as to the accuracy or completeness of the content of this guide. Make sure you understand the risks involved in trading before committing any capital. Never risk more than you are prepared to lose.