Before you start cursing at me, yes, I am aware that there are a million posts asking for beginner advice and that people have already recommended a bunch of great books. It's just that I want to find a book explaining the right stuff.
I have literally zero knowledge about the stock market and stocks in general. I understand that stocks are just small chunks of a company that depend on that company's value, but that's about it. When I'm reading posts and comments on subs like r/wallstreetbets it's like I'm reading another language. I want to find a guide/book explaining the absolute basics of the stock market. Things I'm curious about:
- I want to learn what terms like hedge funds, options trading, shorting, index funds, etc. mean.
- Who am I buying from and selling to? Is it other people? Is it dependent on what app I use? Something else?
- How do things like “the big short” work? I mean, if you know that a stock price is going up, you buy the stock now and then sell it later for a higher price. But what can you do when you think a stock's value will crash? How do you earn money then? Who will pay you afterward?
- I'm from Europe. Is investing in stocks different in the US? Are the two markets separate? Which one should I invest in? Does it matter? Are there any major differences?
- How do I buy stocks in the first place? From what I've seen, people usually do it through apps like Robinhood and such. Is that the only way? Is there a better way?
As you can tell from my probably very dumb questions, I have virtually zero knowledge but am willing to learn. I am sure there are many other things that I should learn about, it's just that I don't even know that I don't know them. So, after reading what I'm looking for, do you have any guide/book recommendations?
Any and all help is appreciated. Thank you in advance!
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