Buckingham Capital Singapore - Understanding the Stock Market

Empowering Smarter Investors Through Knowledge

At Buckingham Capital, we believe that informed investors make better financial decisions. Whether you’re just beginning your investment journey or expanding your market knowledge, understanding how the stock market works is key to building long-term wealth.

This page is designed to give you a clear, jargon-free introduction to the stock market — what it is, how it functions, and how you can participate with confidence.

What Is the Stock Market?

The stock market is a global network of exchanges where investors buy and sell shares of publicly traded companies. When you own a stock, you own a portion of that company — giving you the potential to benefit from its growth, profitability, and performance.

Major stock exchanges include:

NYSE (New York Stock Exchange)
ASX (Australian Securities Exchange)
SGX (Singapore Exchange)
HKEX (Hong Kong Exchange)
LSE (London Stock Exchange)
NASDAQ (U.S. tech-heavy exchange)

Why Do Companies Go Public?

Companies list their shares on the stock market through an Initial Public Offering (IPO) to raise capital. This allows them to fund expansion, innovation, or debt repayment. As an investor, you can buy into these companies and share in their growth. At Buckingham Capital, we’ve facilitated over 1,100 successful IPOs, giving our clients early access to tomorrow’s market leaders — often at discounted entry prices.

How Do Investors Make Money?

There are two primary ways investors benefit from owning stocks:

Capital Appreciation

When a stock’s price increases, you can sell it for a profit.
Example: Buy at $50, sell at $75 = $25 profit per share.

Dividends

Some companies pay regular income (dividends) to shareholders.
Ideal for generating passive income or reinvesting for growth.

Understanding Risk & Volatility

Markets can go up — and down. Understanding market risk is key to long-term success.

Short-term volatility is normal and often driven by news, earnings, or global events.
Long-term focus often rewards patient investors with compounding growth.
Diversification (spreading investments across sectors or regions) can help reduce risk.

At Buckingham Capital, we provide both guidance and risk management tools to help clients navigate changing markets confidently.

What Affects Stock Prices?

Stock prices are influenced by several factors:

Company performance (earnings, news, leadership)
Global events (geopolitics, pandemics, trade policies)
Market sentiment (investor confidence, fear, or optimism)
Economic indicators (interest rates, inflation, GDP growth)

Our clients benefit from daily market research, strategic insights, and real-time updates to make timely, informed decisions.

Getting Started with Investing

Starting is easier than you think. Here’s how:

Open an Investment Account

Through Buckingham Capital, with full access to global markets.

Define Your Goals

Are you saving for retirement, a home, or long-term wealth?

Build a Diversified Portfolio

We help you select stocks, ETFs, funds, or IPOs tailored to your objectives.

Monitor & Adjust

Our advisors offer ongoing portfolio reviews and market insights.

Invest with Clarity, Backed by Expertise

At Buckingham Capital, we empower you to invest with purpose — whether you’re just getting started or scaling your wealth. With a trusted partner by your side, understanding the market becomes not just possible, but profitable.