THEME 01 · FOUNDATION

Foundations: what you own, and what happens when you buy

Start from nothing. What a share actually is, why its price moves, and everything that happens in the seconds and days after you press buy. — 11 lessons · 41 terms · 1 playbooks

The lessons

  1. 1.1

    What you actually own when you buy a share

    A share is a slice of a real business, not a ticker on a screen.

  2. 1.2

    Where shares are bought and sold

    What an exchange is, who's on the other side of your trade, and what a broker does.

  3. 1.3

    Why the price moves

    The price is what two people agreed on a second ago — not what the company is worth.

  4. 1.4

    Market order vs limit order

    The two ways of saying "buy", and what each one gives up.

  5. 1.5

    Why the price you saw isn't the price you got

    Spread, slippage, and the seconds between click and fill.

  6. 1.6

    You bought a share and you're already down

    The spread explains almost all of it. Nothing has gone wrong.

  7. 1.7

    Why your trade takes days to settle

    Trade date, settlement date, and why the cash doesn't move the instant you do.

  8. 1.8

    Fractional shares — what you actually own

    Owning 0.34 of a share, and what that does to dividends and voting.

  9. 1.9

    Nominee accounts: who actually holds your shares

    Why your name isn't on the share register, and what that does and doesn't mean.

  10. 1.10

    Compounding, plainly

    The one bit of maths that makes long horizons behave differently from short ones.

  11. 1.11

    Why prices move while the market is shut

    LSE hours, overnight news, and the gap you see at the open.

Educational content only. It is not personal financial advice.