Basic Concepts of Stock Investment and Valuation
Stock investment involves purchasing partial ownership in companies, traded through KOSPI and KOSDAQ markets in Korea. As of 2025, Korean stock market capitalization is approximately 2,500 trillion won, with individual investors accounting for about 60% of total trading volume. Stock valuation equals price per share multiplied by number of shares held. For example, holding 100 Samsung Electronics shares at 70,000 won results in 7 million won total valuation. Diversification is crucial, with a recommendation to avoid investing more than 20% of total assets in a single stock.