The Best Stock Market Books for 2022

Susan Kelly

May 03, 2022

It's no secret that the stock market is the lifeblood of the American economy. The New York Stock Exchange, the NASDAQ, and other markets see billions of dollars in profits and losses every day.

For a good reason, some of the most successful investors in history are well-known for their passion for books. It's possible to learn a lot from books on the stock market's fundamentals and use that knowledge to develop an investment plan that works best for you.

We've collected a selection of the most outstanding books to help you get a leg up on the turbulent business and gain insight into your stock market investments and beyond as you discover how stocks function.

What Exactly Is the Stock Exchange?

Shares of publicly traded firms can be bought, sold, and issued on the stock markets and in other places. Institutionalized formal exchanges or over-the-counter (OTC) markets that operate under regulations are used to undertake these financial transactions.

A Brief Overview of the Stock Market

Market participants can trade stocks and other financial products with complete confidence and little to no operational risk in a safe and regulated environment provided by stock exchanges. The stock markets function as primary and secondary markets, respectively, under the regulators' authority.

IPOs (initial public offerings) allow firms to sell their equity to the general public for the first time through the stock market (IPO). This activity aids businesses in obtaining the financing they want from a variety of sources. There are 20 million shares (say, 5 million shares), and they are sold to the public for $10 per share (for example, $20 per share) in a stock split.

Stocks of Various Types

Even though the common and preferred stock is the two most prevalent forms of stock, the term "equities" refers to both because common shares' aggregate market value and trading volume are so much more than that of preferred stock.

Preferred and common shares are distinguished by their voting rights. Preferred shareholders cannot vote in corporate meetings, such as the annual general meeting or AGM, whereas common shareholders are entitled to vote.

Best Investing Books of 2022

These books are a great place to start if you're beginning to invest.

Best Overall: The Intelligent Investor

You should read "The Intelligent Investor" if you're only going to read one book about financial markets. It was first published in 1949 by Warren Buffett's college professor Benjamin Graham, and it remains one of the essential books on investing ever written.

Investors can use the book's themes to follow Graham's "value investing" philosophy, despite the book's complexity. Instead of trading and taking significant risks, you should focus on long-term tactics to stabilize your portfolio.

To discover these profitable investments, one must examine the firm's fundamentals, or financial performance, over market fluctuations. A must-read for investors searching for long-term success, this book has stood the test of time over the last seven decades.

The Financial Diet

Beginning with the Financial Diet is an excellent way to learn about money management for 20 to 30-year-olds. On the subject of budgeting, strategies for dealing with off-kilter monetary conversations, and even what to keep in your kitchen are some of the topics covered in this book. Even more advanced money topics, such as how to start on your property, are addressed.

Common Stocks and Uncommon Profits

Philip A. Fisher's excellent book on stocks and investing, "Common Stocks and Uncommon Profits." Benefits are a comprehensive look into speculative reasoning approaches that have substance. It's a good book for investors since it teaches a few essential truths, such as the need to keep your emotions out of the equation.

Best Reference: Berkshire Hathaway Letters to Shareholders

Max Olson, the editor of Warren Buffett's letters to Berkshire Hathaway shareholders, adds new notes each year. A modest, unsuccessful textile firm was transformed into one of the world's largest corporations under Warren Buffett's guidance in his writings. You'll find insights into the economy, finance, management, and more throughout the book.

The lessons in this book trace the company's growth from a share price of $18 in 1965 to a share price of $297,600 in 2017. If you could invest like Warren Buffett, you should be well to financial freedom.

Most Insightful: Market Wizards

The book "Market Wizards" is a great way to learn about the stock market from professionals. Author Jack D. Schwager interviews the world's most successful traders in this book. Interviews with "superstar money-makers," including Bruce Kovner, Richard Dennis, and Paul Tudor Jones, are part of Schwager's investigation into what sets these traders apart.

Interview-style book, but the author distills the professionals' answers into a set of trading concepts you can use in your own business. Anecdotes abound, including one of a trader who made $80 million with just $30,000 in his account.

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