STOCKS

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MODULE 1

What is a stock?

Types of stocks

MODULE 2

MODULE 3

Join Lointaine today and start investing with $1

How do stocks work?

Why do stock prices rise or fall?

How to analyze a stock?

1. What is a stock?

Simple definition: A stock is a tiny ownership piece of a company. When you buy a stock, you become a part-owner of that company.

Everyday example: Imagine a bakery is split into 100 pieces. If you buy 1 piece, you own 1%. If the bakery grows, your piece becomes more valuable.

2. How do stocks work?

Companies sell shares to raise money and grow (without taking loans). You buy shares hoping they go up in value or pay dividends.

Dividends: Payments companies make to shareholders from their profits.
Capital gain: Buying low and selling high.

Example:

You buy Coca-Cola shares at $50.
One year later they’re worth $65.
You made $15 per share (30%).

3. Where do you buy stocks?

Through brokers like Alpaca, Robinhood, Webull, or eToro.

Simple example: It’s like opening a Netflix account, but instead of watching shows, you buy shares.

4. Why do stock prices rise or fall?

Factors:

Earnings reports
News and media
Competition
Interest rates and economy

Real-life example: If your neighborhood store starts selling online and makes more sales, it becomes more valuable. Same for public companies.

5. Types of stocks

Common shares: You can vote and may receive dividends.
Preferred shares: You get dividends first, but usually no voting rights.

Example: Like in a condo meeting:

Common = you vote
Preferred = you always get your money first

6. How to analyze a stock?

Fundamental analysis: Company health (profits, debts, revenue)
Technical analysis: Reading charts and price trends

Beginner tip: Start with companies you use: Apple, Coca-Cola, McDonald’s.