Investing in stocks means buying shares of publicly traded companies, which represent partial ownership. The value of a stock is influenced by the company’s financial health, market sentiment, and broader economic conditions. For beginners, it’s important to learn how stocks are priced and how market events, such as earnings reports or interest rate changes, can affect stock values.

There are two main approaches to stock investing: technical analysis, which looks at past price movements, and fundamental analysis, which evaluates a company's financial health and future prospects. New investors often find it useful to combine both strategies to make informed decisions.

One of the key principles of stock investing is diversification—spreading investments across multiple sectors or industries to reduce risk. Long-term investors typically benefit from holding a diversified portfolio, allowing them to weather short-term market volatility and capture overall market growth.