Investing Fundamentals

Markets are simply places where buyers and sellers agree on prices. This lesson explains what moves prices day to day versus decade to decade, and why the short-term noise rarely matters to a long-term investor.

• Prices reflect collective expectations, constantly updated
• Short-term movement is mostly noise; long-term movement tracks earnings
• You cannot control markets — only your behavior within them

Not all stocks behave alike. We explain the main ways stocks are categorized — company size, growth versus value, dividend payers — and why understanding these helps you read what a fund actually holds.

• Large and small companies carry different risk profiles
• Dividends are a share of profit paid to owners
• Categories help you understand exposure, not pick winners

Bonds differ by who issues them, how long they run, and how likely they are to be repaid. This lesson covers government versus corporate bonds, duration risk, and why bonds serve as a portfolio's shock absorber.

• Longer duration means more sensitivity to interest rates
• Credit quality trades safety for yield
• Bonds reduce volatility more than they build wealth