Stocks vs. Securities: Understanding the Rights You Own
Stocks are securities that represent ownership in a company. Learn how their rights differ from bonds and funds, and why products traded in the same app need different analysis.
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Stock Markets and Trading
Original, source-based guides to stock markets and trading for investors.
20 articles · Original research guides with primary sources and worked examples
Topics · Stock Markets and Trading
Common vs. Preferred Stock: Four Rights to Check Before Dividend Yield
Preferred stock is not inherently safer than common stock. Compare dividend priority, voting rights, cumulative dividends, conversion terms, and trading liquidity.
Read article →Why a Large Market Cap Can Still Mean Thin Trading: Understanding Free Float
Market capitalization measures equity market value, while free float estimates the shares available for trading. Explore the calculations and differences in free-float definitions.
Read article →How to Read a Stock Order Book: Prices, Depth, and Execution
Buy and sell quantities in an order book are not completed trades. Connect best quotes, cumulative depth, and trade records to assess execution prices and the risk of an unfilled order.
Read article →Market vs. Limit Orders: Price Control and the Risk of Not Filling
Market orders prioritize execution, while limit orders set a price boundary. Partial-fill examples explain each order type's risks and what to check after submitting an order.
Read article →Executed Volume vs. Order Quantity: Cancellations, Partial Fills, and Open Orders
Orders resting in the book and shares actually traded measure different things. Learn why repeatedly placing orders does not increase volume and how to verify execution records.
Read article →How to Calculate the Bid-Ask Spread: Trading Costs Beyond Commissions
The gap between the best ask and bid is a cost of immediate trading. Calculate the spread in KRW and percentage terms, and distinguish additional costs caused by order size.
Read article →How Call Auctions Set Prices: Reading the Indicative Match Price
A call auction matches collected orders at one price. Explore how it differs from continuous trading, how cumulative demand and supply work, and why indicative prices change.
Read article →Trading Value vs. Volume: How to Compare Stock Trading Activity
Volume counts shares, while trading value totals actual transaction amounts. Compare stocks at different prices, calculate average execution prices, and avoid confusing turnover with capital inflows.
Read article →Understanding OHLC Prices: What Open, High, Low, and Close Cannot Tell You
OHLC prices compress a trading session into four numbers. Understand close-to-close versus intraday returns, extended-hours price differences, and the paths hidden within identical candles.
Read article →Adjusted vs. Unadjusted Stock Prices: Comparing Charts Across Stock Splits
Adjusted prices account for events such as stock splits to make historical prices comparable. Learn when to use each series and why dividend adjustments change return calculations.
Read article →Stock Splits and Reverse Splits: Why Changing Share Counts Does Not Create Value
Splits increase share counts and reverse splits reduce them, but neither creates company assets by itself. Calculate holdings and reference prices, and distinguish fractional-share treatment from market moves.
Read article →Premarket and After-Hours Trading: Check the Venue and Order Terms First
Eligible stocks and order types vary by venue and broker outside regular hours. Check sessions, quotes, and order carryover rules while keeping Korean and U.S. market structures distinct.
Read article →How to Read a Trading-Halt Notice: Reasons, End Conditions, and Follow-Up Disclosures
A trading halt's meaning depends on its cause and lifting conditions. Follow halt, extension, and resumption notices on KIND, and understand why a frozen price still carries risk.
Read article →Do Daily Price Limits Cap Your Loss? Trading Boundaries and Consecutive Declines
Daily price limits restrict the day's trading range. Learn why execution is not guaranteed at either limit, how losses compound over several days, and when reference-price rules differ.
Read article →Short Selling vs. Securities Lending Balances: Volume, Open Positions, and Borrowing
Not all borrowed shares have been sold short. Distinguish daily short-sale volume from outstanding positions and lending balances, and check denominators and reporting lags.
Read article →Margin Trading and Collateral Risk: Calculate Investment Losses and Forced-Sale Risk Separately
Borrowing to buy stocks can magnify losses on your equity and create a collateral shortfall. Work through a hypothetical collateral ratio and learn what to check in broker terms.
Read article →Foreign and Institutional Net Buying: Understanding What the Trading Data Covers
Foreign and institutional net buying measures a group's purchases minus sales, not a guarantee of future prices. Read it alongside gross trades, cumulative flows, and ownership percentages.
Read article →Why Index Inclusion Drives Trading: Expected Demand vs. Actual Buying
Index inclusion can prompt tracking funds to rebalance, but it does not guarantee price gains. Separate announcement and effective dates, free-float weights, and existing holdings in your calculations.
Read article →When Can You Use Cash After Selling Stocks? Execution vs. Settlement
Buying power and withdrawable cash can differ after a stock sale. Check settlement dates, business-day calendars, currency conversion for overseas shares, and broker processing terms.
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