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Markets & Economy

This section explains the big forces behind market headlines. When a news report says "the market fell 2%," it is usually talking about a stock market index — a basket of companies measured as one number.

Markets & Economy

What is a stock market index?

"The market" in the news is usually an index. Here is what an index measures, and why the way it is weighted changes what it tells you.

7 min read · Beginner

Also in Markets & Economy

New to Markets & Economy? Read in this order

  1. What is a stock market index?

    7 min read

  2. What is inflation and how is it measured?

    7 min read

  3. Market orders vs limit orders

    7 min read

All Markets & Economy explainers

6 published

Markets & Economy

How do interest rates affect stocks?

Rate decisions move markets because they change what future money is worth today. Here is the chain from the Fed's meeting room to a share price — without any forecast.

6 min read · Beginner

Markets & Economy

What is inflation and how is it measured?

Inflation quietly changes what your money can buy. Here is how the official US measure is built, how to read it, and why investors care about "real" returns.

7 min read · Beginner

Markets & Economy

Bull and bear markets explained

Two animal labels for the market's long swings. Here is what they mean, how the numbers work, and why the labels are only clear in hindsight.

6 min read · Beginner

Markets & Economy

Market volatility explained

Prices swing every day. Here is how to measure those swings, what happens when they get extreme, and why a calm plan matters more than a forecast.

6 min read · Beginner

Markets & Economy

Market orders vs limit orders

The order type you choose decides what you control: whether the trade happens, or the price it happens at. Here is how the four basic orders work.

7 min read · Beginner

Terms used in this section

Glossary A–Z

About this section

This section explains the big forces behind market headlines. When a news report says "the market fell 2%," it is usually talking about a stock market index — a basket of companies measured as one number. When it says rates went up, it means the cost of borrowing changed, which affects how much investors are willing to pay today for money a company may earn later. Inflation, measured in the US by the Consumer Price Index, describes how fast prices rise and how much a dollar can buy over time. Each guide defines its terms the first time they appear and works through the numbers step by step.

We do not predict where markets will go next, and nothing here is a recommendation to buy or sell. The goal is to help you read the news calmly and understand what is actually being measured. If you are brand new, start with what an index is, then how interest rates and inflation connect to stock prices. When you are ready to place a trade, read the guide to market and limit orders first, because the order type you choose decides the price you may get. Where a guide uses a figure or a rule, it links to the official source — the SEC's Investor.gov, the Federal Reserve or the Bureau of Labor Statistics — so you can check it yourself.