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In this lesson, we move from theory to practice. Most beginners open a trading app and immediately look at one number: the stock price. That instinct leads to the first major mistake in investing. In this video, we break down: • Why price alone tells you almost nothing • The difference between stock price and market capitalization • Why a $10 stock can represent a larger company than a $1,000 stock • What bid, ask, and spread really mean • How volume and liquidity affect risk • The difference between realized and unrealized losses • Why stock prices are not scoreboards Understanding how to read a stock quote properly is one of the most important practical skills in investing. Before you can make good decisions, you need to interpret the information in front of you correctly. This is part of the Foundations of Investing series, where we build investing knowledge from first principles. stock price vs market cap what is market capitalization bid ask spread explained liquidity risk in stocks how to read a stock quote realized vs unrealized loss