Lesson 2

Stocks, explained

What you own when you buy a share, and why everyone watches the S&P 500.

A stock is a slice of a real business. An index is a basket of many slices.

Marcus What do I actually own when I buy a share?

2.1

A stock is a slice

  • A company is the whole bun.
  • A share is one slice.
  • When the bun earns, slice owners share it, as dividends or as a higher share price.

Tap a slice.

2.2

What is the S&P 500

Loading the data…

2.3

The Magnificent 7

Loading the data…

2.4

Why it's the benchmark

  • Broad

    500 companies across every sector.

  • Rule-based

    Companies join and leave by rules, not by someone's opinion.

  • Hard to beat

    Most professional funds trail it over long periods. Source: S&P SPIVA scorecard

2.5

Around the world

Loading the data…

2.6

Every market falls

Falls are normal weather. What you do during them matters more.

Loading the data…

2.7

What's inside

Loading the data…

Quick check

  1. What is a share?

  2. What is the S&P 500?

  3. Why does buying one stock carry more risk than buying the index?

Try it

See who's in each basket

The screener filtered to S&P 500 or STI members.

Education, not financial advice. Past returns don't guarantee future returns.