Summary: This is part 1 of the 5 episode “Back to the Basics” series from <a href="https://itunes.apple.com/us/podcast/investing-for-beginners-podcast-your-path-to-financial/id1210741497?mt=2">The Investing for Beginners Podcast</a>. Each episode covers the fundamentals of the stock market and investing to provide a solid foundation for those who are looking to compound their wealth over time.<br> Here are the links to each of the episodes:<br> <a href="https://einvestingforbeginners.com/stocks-and-shares/">Back to the Basics Pt 1: The Anatomy of Stocks and Shares</a><br> –Defining what a stock is<br> –Talk about the big 3: the cash flow statement, balance sheet, and income statement<br> –Earnings manipulation<br> <a href="https://einvestingforbeginners.com/share-dilution/"> Back to the Basics Pt 2: Share Dilution on Wall Street</a><br> –What is a stock<br> –What are stock buybacks and how they affect us<br> –What are share dilutions<br> –What happens when we buy or sell a stock<br> <a href="https://einvestingforbeginners.com/other-investments/">Back to the Basics Pt 3: Stocks vs Other Investments</a><br> –Peer to peer lending<br> –Real Estate<br> –Gold and other precious metals<br> –Bitcoin and other cryptocurrencies<br> –Bonds<br> <a href="https://einvestingforbeginners.com/investing-101/">Back to the Basics Pt 4: Investing 101 and Compound Interest</a><br> –The importance of buy and hold<br> –Compound interest and how it can make you wealthy<br> –Using a compound interest calculator<br> –The power of dollar cost averaging<br> <a href="https://einvestingforbeginners.com/dividend-stocks/">Back to the Basics Pt 5: Dividend Stocks and Value Investing</a><br> –The advantages of buying low and selling high<br> –Dividends and the power of compounding<br> <br> Dave: Welcome to Investing for Beginners podcast, this is episode 43. Andrew and I are going to be talking about some beginning stuff. As my baseball coach used to say it’s all about the basics and we used to drill it into our heads every single week, but it works it helped us a lot we were a good team, and we won a lot of games, and so it was awesome.<br> <br> * Defining what a stock is<br> * Talk about the big 3: the cash flow statement, balance sheet, and income statement<br> * Earnings manipulation<br> <br> So I think going back to the basics is always a great thing and you can never know enough, and it’s always good to just learn the foundation and kind of build from there.<br> Andrew: yeah let’s talk about stocks. I mean if there is a way to change the archive so this would be the first one. And people would just kind of follow a progression that would be awesome and hopefully this is an episode that we can reference in the future and tell people hey if you’re completely beginner and you want to understand how the stock market works and why it works the way it does and what it all means from the most basic perspective.<br> Hopefully, this episode will cover that so basically you know we talked about this a lot how a stock is part owner of a company. But you know what does that mean exactly what is the stock market at all and then you know why it even they exist is.<br> So you have to think about the way the business world works for a minute, and I’m not going to use the lemonade example because I feel like everybody uses a lemonade stand. So let’s say you have a coffee shop it’s very successful you got the line up the door and demands high to grow the business.<br> You have a couple of options as the business owner; you can use cash which might take a little while because you need to collect more cash save it up and use that to build a new store or in your shop or whatever or you know you could go the bank get a loan.<br>
