Jump to ratings and reviews
Rate this book

Why Does The Stock Market Go Up?: Everything You Should Have Been Taught About Investing In School, But Weren't

Rate this book
Have you ever heard a news reporter say "the Dow rose 300 points today" and had  no clue  what they meant? If the answer is yes, you're not alone! Most people are taught nothing about investing or the stock market while they are in school. In  Why Does The Stock Market Go Up? , Brian Feroldi demystifies the stock market by explaining what it is and how it works using easy-to-understand terms and simple examples. This book was designed to arm ordinary people with the knowledge that they need to build extraordinary wealth. 
Why Does The Stock Market Go Up? is the easy-to-digest book that everyone needs to read. Feroldi breaks down the basic investing concepts so that anyone can understand and take action. The financial services industry has spent decades telling average Joes and Janes that they can't possibly understand the stock market. Feroldi proves them wrong with his easy-to-understand examples and explanations. You too can understand why the stock market goes up, or down, and how it impacts your financial future. Never before has investing in stocks or bonds seemed so straightforward.

294 pages, Kindle Edition

Published April 5, 2022

Loading interface...
Loading interface...

About the author

Brian Feroldi

1 book6 followers

Ratings & Reviews

What do you think?
Rate this book

Friends & Following

Create a free account to discover what your friends think of this book!

Community Reviews

5 stars
162 (33%)
4 stars
180 (37%)
3 stars
114 (23%)
2 stars
26 (5%)
1 star
4 (<1%)
Displaying 1 - 30 of 68 reviews
Profile Image for Daniel Hageman.
336 reviews47 followers
February 1, 2023
Might be the go-to recommendation for those looking to become financially literate at the most basic yet necessary level. Right up the with The Simple Path to Wealth, possibly better.
November 2, 2023
Very nice and simple explanation for the stock market for dummies. It is a book that everyone can understand, should be read in schools. One star missing cause it is only for newbies like myself, but a great starting point nonetheless.
Profile Image for Adam Lund.
36 reviews5 followers
May 29, 2022
This is a simple, quick introduction to stock market investing. Short chapters introduce basic concepts clearly, making this ideal for beginners. Feroldi helps the reader feel empowered and confident in beginning their investing journey.
Profile Image for Thomas.
236 reviews1 follower
May 21, 2023
A great book for any investor to read. I learned a lot.
Profile Image for nicky.
25 reviews5 followers
July 31, 2023
slayed very digestible reading the news kinda makes more sense now
August 25, 2023
A fantastic book for anyone looking to start investing into the stock market and seeking some basic knowledge around that. It contains simple explanations, enough historical context, and some useful graphs. I liked the concise style of each chapter offering just the right amount of information (no more, no less). I've been investing for almost two years, but it was still useful to refresh the basic knowledge and remind myself about a couple of key principles.
Profile Image for Gillyz.
98 reviews14 followers
January 23, 2024
Very basic knowledge, useful for who's starting to learn about investments. Not fit to experienced investors.
11 reviews
April 9, 2022
It's a blogg not a book

The book tries to come of as serious claming it is 294 pages. I've never read 294 pages so fast in my life and i am not a fast reader. Simple answer is that it is not 294, it would come down to around 90 if it was properly formated as a real book, perhaps 60 if you remove all the duplicated information, unnecessary lists and recap at the end of several chapters. Some chapters aren't even a page long. Secondly, the quality of the book is just incredibly low. It claims that it is made simple so that anyone can get started with investing
That is not a problem, infact that is a good thing. However, it still requires the content to be of high quality even if it is explained in simple terms. This in itself becomes a problem with the book because it over simplifies things too far that you remove useful and necessary information inorder to explain it in an easy to understand language that the point becomes useless because it doesn't correlate to the real world. I follow Brian on twitter and i enjoy some of his tweets as they are informative so when the news came thay he had writen a book i was actually excited to read it. As soon as i started though i became quite dissapointed because it wasn't the "book" i thought it to be. So i though maybe it would be good for my wife who has started to take an interest in investing and finance, or for my son when he is older. Short answer is no. The book doesn't teach you anything meaningful and what it does try and teach you is so simplistic that it's not usable. It's not a book, it's a longer bloggpost that you are paying a high price for. Very very dissapointed.... this is one book you can do without!
Profile Image for Chris Boutté.
Author 7 books204 followers
April 9, 2022
I’ve been investing for about a year, so I’m still extremely new to investing. Brian Feroldi starts this book by saying that he wrote the book he wish he had when he was trying to learn how to invest, and he nailed it. Whether you’re just getting started, or about to get started, this short book provides a ton of value. I do think it’s also a great refresher book for any experienced investor to remember some fundamental aspects of markets and the stock markets work.

The book starts with giving a brief history of the stock market, and I actually finally learned what the hell the NASDAQ and Dow Jones are thanks to Feroldi. From there, Feroldi uses a fictitious coffee startup to explain how businesses start, why they go public, and all of the other aspects of what makes their share prices go up and down. This paints an easy-to-understand picture for the reader, and he provides a ton of visuals in the book. And after laying the foundation for all of this, he answers a bunch of questions new investors ask like when you should sell a stock, if a financial advisor is a good idea, how diversified you should be and more.

Awesome book, and I highly recommend it.
3 reviews3 followers
February 27, 2023
best intro to investing book I’ve read

Brian is an expert at making things simple. Not a wasted word or chapter. I can’t recommend this book highly enough!
Profile Image for Shiva Nangi.
3 reviews
January 3, 2024
If you're a novice in the world of stock trading, look no further - Why Does The Stock Market Go Up is the perfect 101 guide to kickstart your journey into the stock market. This comprehensive book brilliantly outlines the basics of the stock market, making it an indispensable read for anyone eager to navigate the complexities of investing.

One of the standout features of Why Does The Stock Market Go Up is its ability to break down complex concepts into easily digestible information. The author, with a keen understanding of the challenges faced by beginners, presents the material in a clear and accessible manner. Whether you're unfamiliar with stock market terminology or struggling to grasp the dynamics of market trends, this book serves as a friendly mentor, guiding you through each step with clarity and precision.

The book begins by laying a strong foundation, covering fundamental concepts such as stock types, market indices, and the dynamics of supply and demand. The author's use of real-world examples and case studies provides practical insights, ensuring that readers not only comprehend theoretical concepts but also learn how to apply them in real-life scenarios.

Furthermore, Why Does The Stock Market Go Up goes beyond just explaining the basics; it delves into essential strategies for successful stock market participation. From understanding risk management to conducting thorough research before making investment decisions, the book equips beginners with the knowledge necessary to make informed choices in the ever-evolving world of finance.

The author's writing style is engaging, making it easy for readers to stay focused and absorb the information effectively. The use of analogies and anecdotes helps to simplify complex ideas, ensuring that even those with no prior financial background can follow along seamlessly.

In addition to its educational value, Why Does The Stock Market Go Up stands out for its practical approach. The inclusion of actionable tips and step-by-step guides enhances its utility for readers who are ready to put theory into practice. Whether you're looking to build a long-term investment portfolio or explore the intricacies of day trading, this book offers valuable insights that cater to a wide range of investment goals.

In conclusion, Why Does The Stock Market Go Up is a stellar resource for stock market beginners. Its thorough coverage of the basics, coupled with practical advice and an engaging writing style, makes it a must-read for anyone seeking a solid foundation in the world of stock trading. Whether you're planning to invest for the first time or aiming to refine your existing knowledge, this book is an invaluable companion on your journey to financial success in the stock market.
Profile Image for CJ Ortiz.
1 review3 followers
January 19, 2023
I’m a fairly casual investor who graduated business school about five years ago. I’ve enjoyed following Bryan on Twitter for a while now, and was excited to pick up this book as a refresher on my finance knowledge.

The book is pretty much exactly what I expected. The quote on the front of the book describes it perfectly, “simple, no nonsense, and practical.”

If you’re looking for something more advanced, you probably won’t find this worth your time. Since I am not actively engaged in the finance world, I appreciated the refresher that this book provided. For example: what a P/E ratio is, and what a rising or declining P/E ratio *can* indicate.

I will likely share this book with people in my life who have yet to begin investing and need a very simple read to break down on a potentially complex subject.
Profile Image for Aaron Lim.
80 reviews7 followers
July 25, 2023
Key Learning Points

1. Stocks follow earnings
- When earnings go up, the stock price goes up. When earnings go down, the stock price goes down.
- Businesses that are growing their profits have the ability to share a larger and larger stream of their profits with their shareholders.

2. What a stock is worth
- How much profit a company is expected to earn in the future.
- How much investors are willing to pay to buy those earnings today.

3. Market crashes
- Crashes are unpredictable because they are caused by human emotions.
- Tough economic times force businesses, workers and entrepreneurs to try new things.
- Weak businesses die in downturns, which allows their stronger competitors to capture their customers.

Overall, it's serves as an excellent introduction to the markets.
January 19, 2023
Excellent introduction to stock market, stock market psychology, and how the earnings drive the market. The book is written in a very easy to read manner. The chapters are so small so it encourages finishing the book in a day or two. I would call myself as an intermediate knowledge person in stock market and I was able to read, take notes and complete the book within 2 days. I would highly recommend to any one who is new the world of investing.

Part 8 on How to get started can be improved by introduced terms related to buying and selling stocks such as limit orders, etc.,

I really loved "Odds of a Positive Real Return", "U.S. Stock Market Crashes", and why do earnings go up sections.
Profile Image for David.
42 reviews3 followers
April 25, 2022
I enjoyed the simple and clear approach that Brian took to explain a rather complex topic.

Experienced investors will argue that the book was too simplified, but that's the point. I would have loved to have read this book during high school or college.

Highly recommended to any new investor or to anyone slightly interested in knowing why the stock market exists, and how stocks work.

In terms of format, chapters are short and clear, I like that. They even include a "Review" section at the end, which I skipped every time because the chapters were already short enough to keep them in my head. They are useful to come back later, tho.
Profile Image for Erfan.
38 reviews20 followers
October 24, 2022
A no-nonsense, to the point and succinct book.

Brian Feroldi well articulated 20 years of consumed information on the Stock Market.

This small book should be taught to our students from high school. Financial literacy is critical and this is one of the best gifts we can give to our young generation.

This book explains why the stock market is a great wealth-making machine and explains all your queries with "What" "Why" and "How".

This book will give you some confidence and encouragement to start investing. If you are still in your 20s, don't waste that precious time and start learning personal. finance and investments. This book can be a great start.
11 reviews
July 6, 2023
This book is a great and unintimidating look into the world of investing. I would recommend this book to anyone interested in getting started with investing in the stock market that is unsure of how it works. Brian does a great job explaining these concepts in a concise and easy to understand manner that is approachable for anyone. I will give this book to my kids to introduce them to the concept of the market one day (still no kids in my life :)). If you already have a good understanding of the market then you won’t learn much from this book but that is not the intention here.

TLDR; great book for a basic introduction to the stock market
Profile Image for Sergio.
17 reviews
May 20, 2023
Informative Financial Guide

Great book whether you are a beginner in the stock market, or have been investing for a long time. I consider myself a knowledgeable investor, having invested in the stock market for many years and managing my own portfolio. Even with my experience, this book helped strengthen my knowledge around various investing methods and tricks. I was able to fill in some of the gaps in my investing skills. I will use some of the new things I learned to continue to grow my net worth!
2 reviews
April 6, 2022
investment

Great summary and an easy read for new investors and even mid level investors. Read the book in one day. Clarifies some doubts about some concepts and confirms knowledge I have . In addition will help me strengthen company valuation and creating my own system whether to invest in a company or not. Will definitely be using it a reference and guidance . Good tool to educate friends and family,

Profile Image for Jake Preston.
161 reviews15 followers
July 16, 2022
A terrific and accessible introduction to the world of the stock market, the single greatest wealth creation machine in the history of the world. Feroldi ignores industry jargon and needless sophistication. Instead, he provides a holistic education about what it means to invest, the wonder of compounding, why the stock market goes up, what to look for when hiring a financial advisor, and more. A great place to start for anyone looking to begin building wealth through investing.
Profile Image for Tim.
35 reviews2 followers
August 23, 2022
I enjoy that you do not need to know anything about stocks to get a lot out of this book, everything is broken down into bite sized pieces so one can easily identify a particular topic they would like to learn more about.

That being said, I think the book could have done a better job of answering the fundamental question of why the stock market always goes up, as the explanation given in the book doesn't go into as much of an in depth explanation as I would have liked.
Profile Image for James.
177 reviews
July 14, 2023
4.5 Stars

A great introductory book on investing. Even though only a little advice is given, that provided is rock solid. I wish this went a bit more in detail on different types of investments and why you would pick one over another, but this is an introductory book after all.

I'll note that while the audiobook reader is great, many table are read aloud. Reading this, especially for reader who don't regularly deal with tables and graphs, will likely be easier in print.
155 reviews
April 12, 2022
Basic summary on how to invest, much better than the textbooks from college. Reading this simple guide may have finally removed my fear of investing… maybes I’m not a gambler, I’m very risk adverse, but I feel like I’m missing out since I only have my retirement stuff together (and only very recently reviewed and rolled over!). Good quick read.
Profile Image for Dom Nuno.
160 reviews4 followers
May 7, 2022
A very good, very simple synthesis of what a beginner needs to know about finance. It’s an amazingly succinct and easy to grasp way of presenting concepts that often seem daunting.
Recommended reading for anyone starting out or even better with curiosity about the financial world and investment.
Like the author says, it’s the book I would have loved to have when I started.
Profile Image for Brandon Rathbun.
176 reviews13 followers
July 12, 2022
Great read for the very basics of the stock market.
Don’t read this book expecting to get investing strategies (outside of ‘always be investing’), or expect the author to dish out best stock tips.
But expect easy to read insightful basics on the market.

Recommend for novice investors, not those who have been in the market for awhile.
Profile Image for JOHN MITCHELL.
112 reviews
January 18, 2023
If you can't understand this book you probably shouldn't be investing!

Without a doubt the simplest and most straightforward book I've ever read on the topic!

Clearly written, with concise chapters and helpful advice. Perhaps not for the expert but absolutely for everyone else, and remember, there are no experts in this field.
Profile Image for babyk.
10 reviews
January 29, 2023
easy read, extremely basic information.
well written for beginners, if you basic information already on the stock market this book is likely to be worthless to you.
but like i said it’s perfect introduction for beginners and is really helpful in creating easy and accessible graphs and diagrams so you can see in simple examples how and why the market works as it does.
Profile Image for Daniel Milford.
Author 9 books23 followers
April 3, 2023
Forfatteren er veldig nyttig og pedagogisk på Twitter, så hvorfor ikke prøve boka hans? Her er svaret: Fordi boka er myntet på komplette nybegynnere. Her er en bonus: Boka er full av tabeller som er et mareritt å lytte til som lydbok. Et tillegg: Hoveddelen av boka er ikke ment å leses i rekkefølge, men ved behov. Konklusjon: Nyttig oppslagsverk for nybegynneren. Ligg unna lydboka.
Profile Image for Crystal (VanillaHearts62).
315 reviews48 followers
April 29, 2023
Very good introduction. Not overwhelming at all, and it has a lot of simple examples to give you a general idea. I would have liked to see more info on how to read a stock quote. It mentioned a few things but left out a lot. Still, a great starting point. I know a little bit about investing so some was old, but I also gained clarity on a few concepts. Very good!
1 review
April 10, 2022
Good starter book on investing!

Brian does a very good job breaking down the key points relevant to investing and explains in a simple no nonsense way to investors who are just starting out and to make sure they get on the right path as early as they can.
Displaying 1 - 30 of 68 reviews

Can't find what you're looking for?

Get help and learn more about the design.