Financial Knowledge

Investing in Stocks

This section summarizes the basic concepts of stock investing, including shares and shareholder rights, stock indices and trading rules, short selling, dividends and capital increases, and basic financial ratios. It does not recommend any particular stock or trading timing; for detailed rules, please check the latest guidance from the exchange and the financial authorities.

इस पृष्ठ का हिन्दी संस्करण तैयार हो रहा है। तब तक सामग्री अंग्रेज़ी में दिखाई जा रही है।

55 questions · Last updated

  1. 01What is a stock?
  2. 02What rights do shareholders have?
  3. 03How do common shares and preferred shares differ?
  4. 04How many non-voting shares can a company issue?
  5. 05What are convertible preferred shares and redeemable shares?
  6. 06How is market capitalization calculated?
  7. 07How are stock indices constructed?
  8. 08What is the KOSPI?
  9. 09What kind of market is KOSDAQ?
  10. 10What are the KOSPI 200 and the KOSDAQ 150?
  11. 11How do the KOSPI market, KOSDAQ, KONEX and K-OTC differ?
  12. 12How is a stock trade executed?
  13. 13When I buy shares, when is the money taken out and when do the shares arrive?
  14. 14What are the regular trading hours of the stock market?
  15. 15What is a call auction (single-price auction)?
  16. 16How do market orders and limit orders differ?
  17. 17What is after-hours trading?
  18. 18What are the upper and lower price limits (daily price limit)?
  19. 19When are circuit breakers triggered?
  20. 20What is a sidecar?
  21. 21What is a volatility interruption (VI)?
  22. 22What happens when a stock is designated as short-term overheated?
  23. 23What is short selling?
  24. 24Is short selling allowed in Korea?
  25. 25What is the uptick rule?
  26. 26What sanctions apply to illegal short selling?
  27. 27Can individual investors short sell?
  28. 28What is a dividend?
  29. 29How does a company decide how much to pay in dividends, and how?
  30. 30How do stock dividends differ from cash dividends?
  31. 31What are interim dividends and quarterly dividends?
  32. 32By when must I buy shares to receive a dividend?
  33. 33What does ex-dividend mean?
  34. 34What is a paid-in capital increase?
  35. 35How do the methods of paid-in capital increase (shareholder allotment, general public offering, third-party allotment) differ?
  36. 36Does a bonus issue increase a company's value?
  37. 37By when must I buy to receive new shares from a bonus issue?
  38. 38What is a stock split, and does it affect the value of shares?
  39. 39What is a reverse stock split?
  40. 40What is a share buyback (acquisition of treasury shares)?
  41. 41What is the PER (price-earnings ratio)?
  42. 42What is the PBR (price-to-book ratio)?
  43. 43What is EPS (earnings per share)?
  44. 44What is ROE (return on equity)?
  45. 45Is there a way to invest in many stocks with a small amount of money?
  46. 46What are the risks of margin trading (investing with borrowed money)?
  47. 47What is unpaid-balance (misu) trading?
  48. 48When is a stock delisted?
  49. 49How have delisting requirements changed recently?
  50. 50What is the 5% rule (large shareholding report)?
  51. 51What is the appraisal right (right to demand a share purchase)?
  52. 52Why is trading on undisclosed information punished?
  53. 53What is a market maker?
  54. 54What should I be careful about when investing in overseas stocks?
  55. 55Why can holding a leveraged ETF for a long time lead to losses?

General financial information, not investment advice. Rules and tax rates change; please check the latest guidance from the source institution.