Investing 101

The basics of investing. Start here.

How to buy SpaceX IPO on Trading 212

If SpaceX proceeds with a public listing, investors will need to look beyond the headlines. Here are the basics to know.

Trading Terms Glossary: Key Finance, Investing & Trading Terminology

Key investing and trading terminology with definitions and examples to improve your financial knowledge.

Mutual Funds: Definition, Types, Examples, Pros & Cons

What are mutual funds – how do they work, what they invest in, what they cost, and how they compare with other investment funds

Alternative Investment Market (AIM): Investing in small cap shares

Learn what the UK’s Alternative Investment Market (AIM) is and how it operates.

Investing vs Trading: Differences, Similarities, Types, Pros & Cons

Explore key differences of investing vs trading, and find out which strategy aligns best with your financial goals.

Cash Flow: Definition, Types, Examples, Ratios, and Metrics

Understand what cash flow is, how to analyse statements, and key metrics to assess a company's financial health.

Weighted Average Cost of Capital (WACC): Definition, Formula, Examples

Explore the formula and insights to better understand the cost of debt and equity in business and investing.

Time Value of Money (TVM): Formula, Definition, and Use

The core principle of TVM is that having money today is more valuable than receiving it in the future.

Revenue vs Profit: Main Characteristics and Differences

Revenue is where you start, placed at the top of the income statement, while profit is found at the bottom.

CapEx vs OpEx: Differences, Formulas, and Calculation

Understand the difference between CapEx and OpEx, learn how to calculate each, and explore real-world examples.

Financial Independence Retire Early (FIRE): Definition, Pros & Cons

Financial Independence Retire Early: Learn how to potentially build wealth and retire sooner through FIRE.

Enterprise Value (EV): Definition, Formula, Examples

Understand the EV definition, formula, and how it reveals a company’s total market value for investors.

Discounted Cash Flow: What is DCF? Formula, Examples, Pros & Cons

Learn how Discounted Cash Flow (DCF) works, its formula, examples, and how it is used to assess investment value.

Market Risk Premium: Definition, Calculation, Use, and Examples

The market risk premium will be different depending on the market in question and the methodology used.

What is break-even analysis?

Break-even analysis helps businesses identify the sales volume needed to cover costs and start making a profit.

Net Worth: Definition, Examples, and Calculation

Net worth is a simple display of the overall financial value of a person, region, company, or sector.

Buy-Side vs Sell-Side Analysts

The buy-side and sell-side processes differ mainly in their goals and interactions with clients.

Should investors worry about inflation?

Understand how inflation affects your investments and discover strategies to beat it and protect your wealth.

Extended-hours trading

Learn about the mechanisms and implications of investing outside of regular trading sessions with this guide.

Is investing small amounts worth it?

So you’ve only got a small amount of money and you’re wondering, ‘is it even worth investing?’. In short, the answer is yes.

Multi-currency accounts for investing with Trading 212

This article is an informative read that proves how a multi-currency account can be a game-changer.

What is an ISA and how does it work?

Individual Savings Accounts are very useful tax ‘wrappers’ available for UK investors.

When should you sell a stock?

Learn about Warren Buffett’s 4 favourite techniques for when to sell a stock.

Top investing mistakes to avoid

Avoid these 13 common mistakes investors make to improve your chance for better investment returns.

Tips for setting up an investment budget

Minimising fees and utilising your monthly stock budget effectively might require you to look into new investment techniques.

What is dollar cost averaging?

Are you looking to reduce the risk of bad timing? Dollar cost averaging might be the solution.

Finding the best stocks for a recession

Learn how to choose stocks that weather economic downturns and safeguard your investments.

What is a bear market?

Investing in industries that have outperformed in past recessions may help protect your portfolio. Adopting these four strategies will help you build a defensive portfolio that should weather a recession better than if you’d not taken any action at all to get defensive.

How to read financial statements?

Understanding financial statements is vital to long-term business and investing profitability.

Extended hours trading for day traders

Extended-hours trading offers new opportunities for day traders. But is it better to trade at night or during the day?

S&P 500 Index Investing Overview: Definition, Calculation, and Examples

What is the S&P 500 exactly? How is it used and why should you, as an investor, care about it?

What is a stock split?

Why do companies do stock splits? Find out what this means for your shares and investments.

Beginner’s guide to diversification in investing

Preserving existing wealth is as important as creating more of it - a fact often missed by market newcomers.

Active vs passive investing

Are you torn between active and passive investing? Here we explore both sides and help you decide which approach might be best for you.

What to invest in during a recession?

As long-term investors, we have to manage our portfolios in every type of environment. In recessions, we can look towards defensive investing.

Pre-market and after-hours trading

Have you ever wondered how to capture those big moves in the stock market that happen before and after regular trading hours?

The ultimate guide to fractional shares

What does it mean to own a fraction of a stock? How can that benefit you? Learn about these and many more in this articles.

What is gross domestic product (GDP)?

The most recognised way to measure the economic performance of a country is relied upon by investors and analysts.

How to do fractional investing?

Looking to get a better grasp of how fractional shares work? We dive deep into the concept along with examples to help you make the most out of this revolutionary tool.

Timing the market vs time in the market

Timing the markets? Even if you could do it perfectly, it still might not produce the best investment returns.

Investment returns: balancing risk & reward

Chasing after a spectacular portfolio return isn’t always the best idea. It’s usually more rational to settle for consistent, reasonable returns.

New ideas on bear market investing

Strategies that work in bull markets don’t work as well in bear markets. In bear markets, it’s time to switch.

ETF Investing: Definition, Examples, and How to Invest in ETFs

How-to guide on one of the most popular investment options known to provide diversification and lower costs.

Investing in big vs small companies

Companies come in all shapes and sizes, but what’s the best size company to invest in?

How to invest online: Online investing vs traditional (full-service)

Have you ever wondered how investing was done before the disruption of online brokerages? In this artcle we deep dive into the different types of brokerages out there.

What is a bull market?

Dive deeper into the bull markets, explore the past examples and see what future may hold.

How to invest in stocks: UK edition

Learn some handy tips on where to start, what to invest in and how to enhance your investing strategy.

Spotting a recession in the UK

How to identify a recession, and how do we survive one? We explore examples from the UK and Europe and compare inflation and recession.

What is spread betting and how does it work? Examples & UK tax rules

Learn how a spread betting account works, UK tax rules, and the role of leverage in spread betting.

What is an Equity Fund? Types, benefits, risks, and alternatives

Tired of picking individual stocks? Equity funds offer built-in diversification. Learn how they work.

What are Investment Funds? Types, examples, and how they work

Learn how mutual funds, ETFs, and index funds work – plus the pros, cons, and key differences between them.

Stocks volatility: Definition of the CBOE Volatility Index & VIX Index charts

What does the VIX really tell you about fear in the markets? Learn how to read volatility like a pro.

The basics of finance and financial literacy: Assets & Liabilities

Financial literacy starts with knowing your assets and liabilities – here is what you need to understand.

What is a Certificate of Deposit? CD accounts explained with examples

Understand the basics of CDs – fixed returns, set terms, and how they fit into your savings options.

Qualifying Money Market Fund (QMMF): How it is defined and what is in it

Not all funds are made equal. Learn how Money Market Funds combine liquidity, stability, and yield.

Money-Weighted Rate of Return (MWRR) vs Time-Weighted Rate of Return (TWRR)

Want to know what you really earned? MWRR shows your personal return, including the impact of cash flow timing.

What is Monte Carlo Simulation? Applications in finance and beyond

From finance to forecasting, explore how Monte Carlo simulation helps model complex scenarios and uncertainty.

Types of investment scams and how to avoid them

Spot the red flags of investment scams and protect your money with key tips to avoid financial fraud.

Economic Indicators: Definition, Role, Types & Examples

Discover how economic indicators shape economies, influence policy, and guide your investments.

Leveraged Buyout: Definition, Examples, Pros & Cons of the LBO model

Learn how LBOs work: acquisitions driven by debt, risks involved, and what makes them successful.

Economic Value Added (EVA): Definition, Formula, Examples

Learn how Economic Value Added (EVA) shows if a business generates returns above its cost of capital.

Capital Asset Pricing Model (CAPM): Definition, Examples, Formula, and Calculation

Learn how the Capital Asset Pricing Model (CAPM) can help you evaluate investment risk and forecast returns.

Internal Rate of Return (IRR): Definition, Formula, and Calculation

Learn how to calculate Internal Rate of Return (IRR) to assess investment profitability and NPV balance.

Defining a stock price and market cap

One of the first things an investor learns when entering the market is the stock price and market capitalisation.

How to invest during high inflation?

Are you worried your hard-earned investment returns will be eaten away by inflation?

Asset classes explained: definition, types and examples

From stocks to real estate, we deep dive into the different asset classes and how to use them to diversify your portfolio.

The most common order types for stocks

Overwhelmed by the different types of orders available? Choosing the right one might be essential.

What is the stock market and how does it work?

The stock market may seem intimidating to understand at first, but it’s actually quite simple.

Brokerage account vs ISA vs GIA

Which one should you pick? Your investment account can determine how much tax you pay and what you can invest in.

Money market vs Capital market

Investors are advised to keep their money spread across various assets. But how can one achieve a healthy mix?

The world’s greatest investors & who to follow in 2024

Learn who the greatest investors of all time are and explore what makes them successful.

The role of inflation in the UK

All serious investors and financial professionals understand inflation, as it can eat away at wealth.

IPO meaning: Initial Public Offering

Are IPOs worth the risk? How can you spot a good one? Check the answers to these questions and more.

20 Warren Buffett rules for investing

Learn Buffett's top investment principles, such as the 90/10 rule, the 10% rule in stocks, and other investment strategies.

Different types of investments to include in your portfolio

Not sure whether and when to include a specific asset class in your portfolio? Look no further...

Investing in index funds: What are index funds and how do they work?

You've heard of them. But what are index funds and how can you use them to diversify your portfolio?

Alpha vs. Beta in Investing Performance: Definition, Examples, Pros & Cons

Explore the difference between alpha and beta - the dynamic duo that defines your portfolio's performance.

What is liquidity in financial markets & business?

Sometimes there is more to wealth than assets. Liquidity, for example, is needed for investment purposes and for running a business.

How to include systematic risk analysis in your investments

Explore this critical risk component in-depth, including sources and effects on investment outcomes.

Stock vs share: What’s the difference?

Ever wondered what's the difference? We dissect the terms with types and examples.

Small Investment Ideas & Smart Investing with Little Money

It's a common misconception that investing is only for the wealthy. Learn some savvy strategies on tight budget investing and start your compound journey today.

Market value: Definition, meaning, examples, calculation & formula

What is market value, how it's calculated and how it can help you in your investment journey?

Benchmarking in investing. What is a benchmark? Definition, examples, types, how it works

Not sure how your investments perform compared to the rest of the market? This article might be the right fit.

Principals and methods of measurement for investment risk management and how they work

We've compiled crucial measurement methods and strategies to help you effectively manage and mitigate risk.

Retail and institutional investors: Definitions, comparison, difference

"Retail investors" have gained quite the popularity in recent years. But how do they differ from the institutional ones?

Identifying meme stocks: Characteristics and indicators

Ever wondered why certain stocks suddenly take off despite average or even poor financials?

Earnings per share (EPS): Definition and meaning. Types, formulas and calculations for EPS

Confused by EPS figures in stock reports? You're not alone. Learn all about earning per share and how to include it in your analysis.

Shareholders vs. stakeholders: Overview, examples and differences

Whose voice reigns supreme? We dive into two concepts which are often misunderstood and provide clarity to help you understand the differences.

Stock outperform rating: Definition, meaning, examples, how a stock gets rated outperform

Stock analyst ratings like outperform and overweight can help you navigate the stock market more confidently.

Smart Money. What is a smart money? Definition, examples, types, how it works

You've probably heard the terms 'smart money', 'insider buying' and 'dumb money'. Find out more on those here.

Asset appreciation vs depreciation. Types of Assets and their Differences. Appreciation Rate calculation formula.

Understand how to spot the growth potential and what to expect from each asset type.

Stock analysis fundamentals

We dissect the stock analysis essentials to stock you up with the knowledge to make informed decisions.

Growth Stocks: Definition, Meaning, Examples, Pros and Cons

Long-term opportunities or short-term gems? Read how to detect growth stocks and how they differ from the rest.

Share buyback: What’s the meaning?

Why do companies buy back shares and who profits from this? Find the answers in our guide.

Total expense ratio (TER): Definition, formula and calculations, TER vs. ongoing charges examples, evaluating total expense ratio

Arm yourself with yet another tool to empower your investment journey and learn how to compare ETFs.

How to calculate the percentage gain or loss from an investment

Which factors impact your portfolio's performance and how to work out the profit or loss.

Capital investment explained for beginner investors

Explore our beginners' giude and dive deeper into how to create a capital investment cycle.

Financial securities explained so every investor can understand

In this article, we compare and contrast the pros and cons of the different types of financial securities.

Effective Annual Interest Rate (EAR): Definition & formula

Knowing EAR will put you one step ahead when considering all available financial products.

Risk vs volatility in investment: Types, comparative analysis & different asset classes

Learn how your investment strategies can benefit from distinguishing between the two.

A practical guide to using social media insights

Take a look at our guide for analysing financial information you find on social media.

Volatility trading guide: Causes, key influencing factors and indicators & volatility trading instruments

Learn the main drivers for volatility and essential strategies on how to navigate it effectively.

Navigating the investment waters: Why social media isn't your best advisor?

We outline 6 aspects to look out when analysing social media content for investing purposes.

The impact of social media and finfluencers on investing

Dive into our guide on dealing with information found on social media and how to detect the relevant insights.

The meaning of liquidity risk and how to manage it when investing

We break down liquidity risk and reveal insights and strategies that every investor should know.

Value stocks and growth stocks: Definition, examples, comparison and investor considerations

Discover how to spot and compare risks in both value and growth stocks and build a balanced portfolio.

What are hurdle rates when choosing investments?

Is an investment worth it? Hurdle rates, along with other essential metrics, can help you find out.

Average purchase price: How to calculate average stock price

If you buy a stock more than once, you need to consider the average purchase price. Find how in our guide.

FTSE 100 Index: Definition, top companies, performance and dividend yield for the Footsie

Dive into the most popular UK index's impact and trends and learn all the things to watch for.

Return on Investment (ROI) vs Return on Equity (ROE) vs Return on Assets (ROA) vs Return on Capital (ROC)

Wonder what Return on Investment, Equity, Assets and Capital mean? No worries, we got you covered.

Gross margin, net profit margin and operating margin: Examples and calculation formula

Looking for a way to understand how much a business makes? This article may guide you through.

EBITDA: Definition, components, formula and calculating EV/EBITA multiples

Can it come in handy or potentially mislead you? We dissect and compare it to other key metrics.

Price-to-Earnings (P/E) Ratio: Definition, formula, and examples

Learn more on one of the most straightforward metrics of a stock's attractiveness.

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