Questions the course answers.

A fraction of the company’s equity: what is left after its obligations. One share out of a million is one millionth of that claim. It is not the desks, the brand, or a board seat, and it is not a loan to the company. The opening lesson is what it means to buy a share.

The price is for one slice. Market capitalization is that price times the number of shares. A low price often means the company cut the pie into more pieces. Compare the whole pie, not the sticker on one slice, before calling anything cheap.

A share is ownership of what remains. A bond is a loan: interest and, usually, principal on a date, paid before owners see a profit. Lenders do not get the upside if the company does brilliantly, and they can still lose money if it fails.

Compounding is arithmetic. Each period’s growth is calculated on a larger base. A savings account can quote a rate. A share cannot. Dividends get cut and prices fall. The formula explains growth. It is not a forecast of what a stock will return.

Price divided by earnings: how many times earnings the market is paying. It is a way of speaking about a price, not a verdict that a stock is cheap or dear. Debt, cash, and accounting choices sit outside that one number. Enterprise value is the later lesson that puts debt and cash back into the price tag.

One company can fail for reasons that have nothing to do with the market as a whole. Spreading a holding across many names means one failure is a smaller part of the whole. It does not remove the chance of losing money.

No. There are no stock picks, price targets, or steps for placing an order. The lessons are vocabulary. A decision about your money belongs with someone licensed to advise you and who knows your situation. The disclaimer is the standing line.

Course one, lesson one. Later ratios sit on those words. When a term shows up early, the glossary has the short definition.