(1) Buying a share in a business means you are purchasing a portion (or percentage interest) of that business. You are then entitled to a portion of that business' future earnings.

(2) Figuring out what a business is worth involves estimating how much the business will earn in the future.

(3) The earnings from your share of the profits must give you more money that you would receive by placing that same amount of money in a risk-free 10-year U.S government bond (for US market).

(4) Stock prices move around wildly over very short periods of time. This does not mean that the values of the underlying companies have changed very much during that same period. In effect, the stock market acts very much like a crazy guy named Mr. Market.

(5) It is good idea to buy shares of