Why Stocks Go Up and Down

William H. Pike and Patrick C. Gregory explain the fundamentals of stock and bond investing for beginners. The book covers how to read financial statements, how companies generate earnings and cash flows, how stocks and bonds are valued, and what drives their prices up and down. Using a single company as a running example, it offers a clear, nuts-and-bolts introduction for anyone starting to invest or study finance.

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Shane Parrish: “This is a basics book on the fundamentals of equity and bond investing – financial statements, cash flows, etc. A good place to start on the nuts and bolts. If you’re looking to learn accounting also check out The Accounting Game: Basic Accounting Fresh from the Lemonade Stand, I’m serious.”