Investing foundations
The path is primarily for ages 13–18 and adult beginners. Younger children can learn alongside a parent or teacher. Levels describe prior knowledge, not a guarantee of suitability for every age.
What you will learn
- Pick a company on the market and describe in one sentence what it does, without deciding to buy yet.
- Open a chart and find a period of rising prices and a period of falling prices.
- Describe a near-term goal and a distant goal and think about why time matters.
Practice example
Stock: a small piece of a company
If you bought two shares at 50 ₪ each, the cost is 100 ₪ before fees.
Pick a company on the market and describe in one sentence what it does, without deciding to buy yet.
Why do prices change?
A company earned more, but less than the market expected. Its price can still fall.
Open a chart and find a period of rising prices and a period of falling prices.
Recommended sequence
- Stock: a small piece of a company
A stock is a share of ownership in a company.
Level 3 · 3 minutes to read - Why do prices change?
A market price is formed at the meeting point between buyers and sellers.
Level 3 · 3 minutes to read - Risk: understanding what you can lose
Risk is the possibility that the outcome will be different from expected, including loss.
Level 3 · 3 minutes to read - Mean, Median and Sample
The mean is the sum of the values divided by their count; the median is the middle value in a sorted series.
Level 3 · 4 minutes to read - Average return is not a promise
A historical average describes a certain period; it is not a commitment to a future outcome.
Level 3 · 4 minutes to read - Diversification: more than one basket
Diversification is splitting investments among different assets and sectors.
Level 3 · 3 minutes to read - Bonds: When You Lend Money
A bond is a security that represents a commitment by the issuer toward the holder.
Level 3 · 3 minutes to read - What is a fund and what is an index?
A fund pools investors’ money and invests it according to a defined policy.
Level 3 · 3 minutes to read - ETF, index-tracking fund and money market fund
A fund pools investors’ money and invests according to a policy. “Tracking” describes the method; “ETF” also describes the way it is traded.
Level 3 · 4 minutes to read - How do you invest in an index?
An index is a measurement of a group of securities according to rules. It is not a security you buy directly.
Level 3 · 4 minutes to read - How does one fund unit represent a basket of stocks?
A unit in a fund gives a proportional share of a fund that holds assets; it is not one share in each company.
Level 3 · 5 minutes to read - How do company weights change an index?
An index can weight companies by market cap, price or equal weight. A large number of companies does not guarantee balanced diversification.
Level 3 · 5 minutes to read - Buying on the screen to understand the operation
A buy order is a request to execute a trade. Sending an order is not always the same as executing a trade.
Level 3 · 4 minutes to read - FX: What’s the price of a dollar?
FX means foreign currency. An exchange rate describes how many units of one currency equal one unit of another currency.
Level 3 · 4 minutes to read - Spot rate, buy rate and sell rate
The quoted (spot) rate is an informational indicator. It is not a promise of the price at which a bank or currency service will execute a transaction.
Level 3 · 4 minutes to read
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