The stock market. It's mystifying. It's up. It's down. Some guy named Dow wants to trade, Jones needs a quote, and everyone wants a broker. Lost yet? You're not alone. To understand what owning stock is all about, you've got to know the basics first. Keep reading. We'll have you typing "ticker symbols" into that "quote" box on MSN in no time.

A stock is essentially a portion of ownership in a corporation. A corporation first sells shares of stock to the public at an initial public offering (IPO) to help raise money for starting or continuing their business. Most of us know that stocks are sold on the stock market, but where exactly is that?

Not just on Wall Street anymore, today the stock market is an entity you can access electronically from almost anywhere. There are actually many stock markets, but people generally consider "the stock market" to be the system that encompasses all of them. Within this organized system, the trading (buying and selling) of stocks occurs through listed stock exchanges like the New York Stock Exchange and the American Stock Exchange, as well as over-the-counter (OTC) markets such as the NASDAQ.

To give investors a little perspective, there are stock averages that gauge the performance of a particular group of stocks. The most well-known are the Dow Jones Industrial Average, which tracks 30 stocks; the S&P 500, which follows 500; and the Russell 2000, which tracks (you guessed it) 2,000 companies. Not so confusing is it?

When average prices show an upward trend it is commonly referred to as a bull market. A bear market, on the other hand, demonstrates weakness in stock prices. New investors beware: There is no fail-safe way to predict the market's upward or downward trends. What is always a safe bet is putting a high priority on the quality of your investments by researching thoroughly. When you are ready to buy, you will usually need a broker. Despite their name, they are actually supposed to help you make money.

There are two options available to help you execute stock trades. A full-service broker offers an array of services, including financial planning and advice. These services are usually anywhere from fifty to hundreds of dollars per transaction. Discount brokerages buy and sell for a much smaller price tag, but without the advice. With discount brokerages, you select stocks on your own and make trades online or over the phone. Understand this basic distinction: brokers are people, brokerages are places. A broker is more expensive because you are actually talking to someone, while using a brokerage, such as E*Trade or TD Ameritrade, is automated and around $15 per trade.

Buying and selling stock is a little more dynamic than walking in a store and paying what's on the price tag. You've got to be able to give your broker, whether it's a person or a computer, some crucial information in order to make a trade.

There are different numbers associated with the price of stock. The bid price is what you, the potential buyer, might offer to pay. The ask price, on the other hand, is the amount for which the owner would be willing to sell their shares of stock. The difference between these two values is the spread.

Through a broker, you will choose between a limit order and a market order for your stock transaction. A limit order allows you to specify at what price you would buy or sell a stock. A market order allows the broker to buy or sell stock at the best current price. Inputting a ticker symbol, a set of letters that identifies the company, as well as the price you are willing to pay, will allow the broker to facilitate the order. Another way to buy stocks is through dividend reinvestment, and as a new investor, you might want to consider this as well.

Dividend Reinvestment Plans (DRIPs) are a convenient and cost-effective way for new investors to build their investments. DRIPs enable investors to use the dividends the company pays them to purchase more of the same stock. These investment plans are usually run directly from the company whose stock you purchase, or another company hired to manage these types of accounts. Many of these plans have very low fees.

You don't need a lot of money to start investing - a hundred dollars could be enough. But you do need to research companies:

• Start looking up companies at websites like finance.yahoo.com or finance.google.com. Try the online business section of major newspapers.
• You don't even need to know the company's ticker symbol - you can look it up when you get there.
• Also check out The Value Line Investment Survey, which you can usually find at a library, or for a fee online at valueline.com. You will also need to continue learning about the stock market:
• Look up terms or concepts you don't know in online dictionaries like investopedia.com or the help section for finance.yahoo.com.
• Visit betterinvesting.mystockfund.com for a list of companies that are common investments.
• Check out a broker comparison chart at fool.com to see the various fees of four major discount brokerages.

Be on the lookout for biased information as you research. It's always a smart idea to visit with financial planning services as you venture into the unfamiliar.

Do some research and let us know what stocks are your top picks and why. We'll post the most insightful stock critiques on brassmagazine.com in February!

Sources: investopedia.com; fool.com; merriam-webster.com; yahoo.com; latimes.com; nytimes.com