Stock Market Fundamentals E-Book

Corey Mack

• Herausgeber: Spines
• Kategorie: Fachliteratur
• Sprache: Englisch

Veröffentlichungsjahr: 2025

Beschreibung

Corey Mack is a seasoned entrepreneur, investor, and educator who has built and grown multiple successful businesses. As President & CEO of Corymack LTD in Alton, Illinois, he oversees a diversified portfolio including auto sport, luxury goods, and environmental services companies. With a dual background in economics and corporate finance, Corey has spent more than two decades studying capital markets, simulating corporate operations, and developing systematic investment strategies.

His deep understanding of how businesses create—and sometimes destroy—value underpins his practical, step-by-step approach to teaching the stock market. In Stock Market Fundamentals: A Beginner’s Guide, Corey distills complex concepts into clear, actionable lessons, empowering new investors to navigate volatility, analyze companies, and build portfolios with confidence. He lives in the St. Louis metro area with his family and speaks frequently at industry conferences and investor workshops.

Leseprobe

STOCK MARKET FUNDAMENTALS

A BEGINNER'S GUIDE

COREY MACK

Corey Mack

Stock MarketFundamentals

All rights reserved

Copyright © 2025 by CoreyMack

No part of this publication may be reproduced, distributed, or transmitted in any form or by any means, including photocopying, recording, or other electronic or mechanical methods without the prior written permission of the publisher, except in the case of brief quotations embodied in critical reviews and certain other noncommercial uses permitted by copyright law.

Published by Spines

ISBN: 979-8-89950-652-9

CONTENTS

Introduction

1. What Is the Stock Market?

1.1 The Stock Market's Purpose

1.2 Primary vs. Secondary Markets

1.3 How Stocks Are Created

1.4 Stock Exchanges & Trading Venues

1.5 Market Participants

1.6 Liquidity & Price Discovery

1.7 Stock Market Indices

1.8 How to Read a Stock Quote

1.9 Key Takeaways

2. How to Get Started

2.1 Choosing a Brokerage Account

2.2 Opening & Funding Your Account

2.3 Understanding Order Types

2.4 Placing Your First Trade

2.5 Settlement & Post-Trade Management

2.6 Common Pitfalls & How to Avoid Them

2.7 Best Practices & Recommendations

2.8 Key Takeaways

3. Understanding Market Participants & Structure

3.1 Retail Investors vs. Institutional Investors

3.2 Market Makers, Specialists & Liquidity Providers

3.3 Alternative Trading Venues

3.4 Order Routing & Execution Algorithms

3.5 Role of Regulators & Oversight

3.6 Clearing & Settlement

3.7 Market Structure Trends & Innovations

3.8 Best Practices & Recommendations

3.9 Key Takeaways

4. Fundamental Analysis 101

4.1 The Three Core Financial Statements

4.2 Key Ratios & Metrics

4.3 Building a Simple Valuation Model

4.4 Qualitative Factors & Adjustments

4.5 Common Pitfalls & How to Avoid Them

4.6 Key Takeaways

5. Technical Analysis Basics

5.1 Foundations of Technical Analysis

5.2 Chart Types

5.4 Support & Resistance

5.5 Common Chart Patterns

5.6 Volume Analysis

5.7 Technical Indicators

5.8 Timeframe & Multi-Timeframe Analysis

5.9 Tools & Platforms

5.10 Common Pitfalls & Mitigation

5.11 Best Practices & Recommendations

5.12 Key Takeaways

6. Developing Your Investment Strategy

6.1 Clarifying Your Goals & Risk Profile

6.2 Growth Investing

6.3 Value Investing

6.4 Dividend Investing

6.5 Indexing & ETFs

6.6 Blended & Thematic Approaches

6.7 Crafting Your Personal Strategy

6.8 Common Pitfalls & How to Avoid Them

6.9 Key Takeaways

7. Portfolio Construction & Management

7.1 The Importance of Diversification

7.2 Strategic Asset Allocation

7.3 Diversification Within Asset Classes

7.4 Tactical Asset Allocation & Tilts

7.5 Rebalancing Your Portfolio

7.6 Portfolio Monitoring & Reporting

7.7 Tax-Efficient Management

7.8 Common Pitfalls & How to Avoid Them

7.9 Best Practices & Recommendations

7.10 Key Takeaways

8. Managing Risk & Emotions

8.1 Quantitative Risk Management

8.2 Stop-Loss & Take-Profit Rules

8.3 Behavioral Finance & Common Biases

8.4 Maintaining Discipline & Emotional Balance

8.5 Contingency Planning

8.6 Common Pitfalls & How to Avoid Them

8.7 Best Practices & Recommendations

8.8 Key Takeaways

9. Taxes, Fees & Other Considerations

9.1 Taxable vs. Tax-Advantaged Accounts

9.2 Capital Gains Taxation

Holding Period: Tax Rate

9.3 Dividend Taxation

9.4 Additional Tax Considerations

9.5 Brokerage & Trading Fees

9.6 Impact on Net Returns

9.7 Tax & Fee Minimization Strategies

9.8 Recordkeeping & Reporting

9.9 Common Pitfalls & How to Avoid Them

9.10 Best Practices & Recommendations

9.11 Key Takeaways

10. Advanced Topics for Future Exploration

10.1 Options Basics

10.2 Short Selling

10.3 Margin Trading

10.4 Combining Advanced Strategies

10.5 Education & Practice

10.6 Key Takeaways

Appendix A: Glossary of Key Terms

Appendix B: Recommended Reading & Resources

About the Author

INTRODUCTION

The stock market can seem mysterious and intimidating to newcomers: flashing tickers, jargon-filled analysis, and endless charts. Yet at its core, it’s simply a mechanism that allows you to own pieces of great companies and share in their growth.

In this book, you’ll learn:

How the MarketWorks—from exchanges and indices to order types and settlement.

Getting Started—choosing a brokerage, placing your first trade, and setting realistic expectations.

Fundamental Analysis—reading financial statements, valuing companies, and spotting quality businesses.

Technical AnalysisBasics—understanding price charts, trends, and common indicators.

Building YourPortfolio—diversification, asset allocation, and long-term vs. short-term strategies.

Risk Management & Psychology—controlling emotion, setting stop-losses, and maintaining discipline.

Whether you’re saving for retirement, funding a major purchase, or simply curious about how stocks work, this guide will demystify each concept with clear explanations, real-world examples, and actionable steps. Let’s turn that flashing ticker into your path toward financial confidence.

1WHAT IS THE STOCK MARKET?

The stock market often evokes images of frantic trading floors, flashing tickers, and steep gains or losses. Yet beneath the surface volatility lies a well-structured, regulated mechanism that enables companies to raise capital and investors to own shares of those companies. In this chapter, we'll demystify the stock market by exploring:

The fundamental purpose and functions of the marketHow stocks are created and issuedThe distinction between primary and secondary marketsThe role of exchanges and trading venuesThe key participants who drive supply, demand, and liquidityHow major indices provide market benchmarks

1.1 THE STOCK MARKET'S PURPOSE

At its core, the stock market serves two primary functions:

Capital Formation for Companies (PrimaryMarket)

Companies issue new shares to raise funds for growth, acquisitions, R&D, or debt reduction.

The initial sale of shares to the public—known as an InitialPublicOffering (IPO)—transitions a private company into a publicly traded one.

Price Discovery & Liquidity for Investors (SecondaryMarket)

Once shares are issued, investors buy and sell existing stock among themselves.

This continuous trading establishes the market price for each company's shares through supply-and-demand dynamics.

Liquidity—the ability to buy or sell quickly at a transparent price—makes ownership of shares practical for individuals and institutions alike.

1.2 PRIMARY VS. SECONDARY MARKETS

1.2.1 PrimaryMarket: Issuance of NewShares

Definition:Where companies raise fresh capital by issuing new securities.

Process:

Underwriting: Investment banks assess the company's value, determine an offering price, and guarantee sale of shares to the public.Regulatory Filings: Companies file a registration statement (e.g., FormS-1 with the U.S. SEC) detailing business operations, financials, and risk factors.Roadshow & Pricing: Executives present to institutional investors; banks set the final IPO price based on demand.Allocation: Shares are allocated to institutional and retail investors at the IPO price.

Key Outcome:The company receives proceeds from the sale (minus underwriting fees), and new shares enter circulation.

1.2.2 SecondaryMarket: TradingExistingShares

Definition:Where investors buy and sell shares with one another, and the issuing company is not directly involved.

Mechanics:

Orders: Investors submit market, limit, or stop orders to buy or sell.Matchmaking: Exchanges or alternative trading systems (ATS) match buyers and sellers.Settlement: Trades typically settle in two business days (T+2), at which point ownership and funds exchange hands.