Market Fundamentals
11 articles
FeaturedWhat Is P/E Ratio?
Price-to-Earnings Ratio—the price of a stock divided by annual earnings per share. A key valuation metric.
Read more →Deep Dives
2 articles
How Markets Find Their Price: Solving for Equilibrium
Where supply meets demand: step-by-step equilibrium math, a surplus/shortage table, and comparative statics showing exactly how curve shifts move price and…
How Prices Carry Information: The Coordination System No One Designed
Prices do more than report costs — they aggregate dispersed knowledge and coordinate millions of strangers without a central director.
Quick Answers
8 termsWhat Is a Treasury Bond?
Debt issued by the U.S. government, backed by the full faith and credit of the United States. The safest bond investment.
Read more →What Is the S&P 500?
An index of the 500 largest U.S. companies, used as a benchmark for the overall U.S. stock market.
Read more →What Is a Bull Market?
A market where stock prices rise 20%+ from recent lows, characterized by optimism and buying pressure.
Read more →What Is Short Selling?
Selling shares you don't own with the goal of buying them back at a lower price. Betting on stock prices falling.
Read more →What Is a Bear Market?
A market where stock prices fall 20%+ from recent highs, characterized by pessimism and selling pressure.
Read more →What Is an IPO?
Initial Public Offering—when a private company becomes public by selling shares to the public. The first day of trading.
Read more →What Is a Bond?
A loan you give to a company or government, paying interest. Bonds are lower-risk, lower-return investments than stocks.
Read more →What Is Market Capitalization?
The total value of a company's outstanding shares. Used to categorize companies by size and compare valuations.
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