Stocks explained: what they are and how to trade them
This guide covers everything you need to know about stocks. What they are, how markets work, the different types, and how to place your first trade. No experience required.
01 The basics
What is stock trading?
A stock is a small piece of ownership in a company. That piece is called a share.
When you buy a stock, you become a part-owner of that business. How much you own depends on how many shares you hold.
Stock trading is the act of buying and selling shares for profit. The price changes constantly as buyers and sellers react to new information.
Fractional investing means you can put a smaller amount into a stock and get exposure in proportion to what you put in.
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02 The markets
How stock markets work
Stock markets are organized exchanges where shares are bought and sold.
The price at any moment reflects what buyers are willing to pay and what sellers will accept.
The two largest stock exchanges in the world are the New York Stock Exchange and the Nasdaq. Most of the world's most widely traded stocks are listed on one of these two exchanges.
Traditional stock exchanges operate Monday to Friday, 9:30am to 4:00pm Eastern Time. Outside those hours, trading on traditional exchanges pauses.
Start from $1
You do not need to buy a full share of any stock. Put in $1 and you own a fraction of the stock on the platform.
Trade any time
Stocks on Cronos App are available 24 hours a day, 7 days a week, including weekends and public holidays.
Available in 183 countries
You do not need a US bank account. Anyone in a supported country can access the same stocks as a trader in New York.
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03 What you can trade
Types of stocks
Not all stocks behave the same way. They differ in risk, volatility, and how they return value to shareholders.
Common stock is the most widely traded type. Blue chip stocks are shares in large, established companies with a long track record.
Growth stocks are expected to grow faster than the market average. Preferred stock pays a fixed dividend and takes priority over common stock if a company is wound down.
ETFs and index funds trade like stocks but track a basket of assets, giving broader exposure without picking individual companies.
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04 Get started
How to start investing
You do not need a large sum of money to begin. Many platforms let you start with $1.
Start with what you know
Choose companies or assets you already understand. A brand you use every day is easier to follow than one you have never heard of.
Know your order types
A market order fills immediately at the current price. A limit order fills at a price you choose.
Spread your risk
Spread across multiple positions, or an ETF like SPY or QQQ, to reduce single-stock exposure.
Manage your positions actively
Know how much you are willing to lose before you enter a trade and decide in advance when you will exit.
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