# WACC Formula: How to Calculate Weighted Average Cost of Capital Published: 2026-04-18 Author: Warren Team URL: https://www.heywarren.com/blog/wacc-formula --- [Weighted Average Cost of Capital](/blog/how-to-calculate-weighted-cost-of-capital) is the single most important discount rate in corporate finance — used for DCF valuation, capital budgeting decisions, and assessing whether a company is creating or destroying value. Understanding how to calculate WACC correctly is essential for financial analysis at any level. ## What Is WACC? **Weighted Average Cost of Capital (WACC)** is the average [rate of return](/blog/calculating-rates-of-return) a company must pay to finance its assets — weighted by the proportion of each capital source in the company's capital structure. **In simple terms**: A company funds its operations through a mix of debt (loans, bonds) and equity (stock). Each source of capital has a cost — interest for debt, expected returns for equity. WACC is the blended average cost of all this capital. **Why it matters**: - **DCF valuation**: WACC is typically used to discount future cash flows - **Investment decisions**: Projects must earn more than WACC to create value - **Performance measurement**: EVA (Economic Value Added) = NOPAT − (Capital × WACC) - **M&A**: Used to value acquisitions and evaluate synergies ## The WACC Formula **WACC = (E/V) × Re + (D/V) × Rd × (1 − T)** ![The four inputs that make up the WACC formula: equity weight, equity cost, debt weight, and after-tax debt cost.](data:image/svg+xml,%3Csvg%20xmlns%3D%22http%3A%2F%2Fwww.w3.org%2F2000%2Fsvg%22%20viewBox%3D%220%200%20600%20211%22%20width%3D%22600%22%20height%3D%22211%22%20role%3D%22img%22%3E%3Ctitle%3EHierarchy%3C%2Ftitle%3E%3Crect%20width%3D%22100%25%22%20height%3D%22100%25%22%20fill%3D%22%23f8fafc%22%2F%3E%3Crect%20x%3D%22220%22%20y%3D%2220%22%20width%3D%22160%22%20height%3D%2258%22%20rx%3D%228%22%20fill%3D%22%232563eb%22%2F%3E%3Ctext%20x%3D%22300%22%20y%3D%2254%22%20text-anchor%3D%22middle%22%20font-family%3D%22system-ui%2C-apple-system%2Csans-serif%22%20font-size%3D%2214%22%20font-weight%3D%22700%22%20fill%3D%22white%22%3EWACC%3C%2Ftext%3E%3Cpath%20d%3D%22M%20300%2078%20L%20300%20105.5%20L%20120%20105.5%20L%20120%20133%22%20stroke%3D%22%23cbd5e1%22%20stroke-width%3D%222%22%20fill%3D%22none%22%2F%3E%3Crect%20x%3D%2240%22%20y%3D%22133%22%20width%3D%22160%22%20height%3D%2258%22%20rx%3D%228%22%20fill%3D%22white%22%20stroke%3D%22%230891b2%22%20stroke-width%3D%222%22%2F%3E%3Ctext%20x%3D%22120%22%20y%3D%22158%22%20text-anchor%3D%22middle%22%20font-family%3D%22system-ui%2C-apple-system%2Csans-serif%22%20font-size%3D%2213%22%20font-weight%3D%22600%22%20fill%3D%22%230f172a%22%3EE%2FV%20%C3%97%20Re%3C%2Ftext%3E%3Ctext%20x%3D%22120%22%20y%3D%22176%22%20text-anchor%3D%22middle%22%20font-family%3D%22system-ui%2C-apple-system%2Csans-serif%22%20font-size%3D%2210%22%20fill%3D%22%2364748b%22%3EEquity%20portion%3C%2Ftext%3E%3Cpath%20d%3D%22M%20300%2078%20L%20300%20105.5%20L%20300%20105.5%20L%20300%20133%22%20stroke%3D%22%23cbd5e1%22%20stroke-width%3D%222%22%20fill%3D%22none%22%2F%3E%3Crect%20x%3D%22220%22%20y%3D%22133%22%20width%3D%22160%22%20height%3D%2258%22%20rx%3D%228%22%20fill%3D%22white%22%20stroke%3D%22%230891b2%22%20stroke-width%3D%222%22%2F%3E%3Ctext%20x%3D%22300%22%20y%3D%22158%22%20text-anchor%3D%22middle%22%20font-family%3D%22system-ui%2C-apple-system%2Csans-serif%22%20font-size%3D%2213%22%20font-weight%3D%22600%22%20fill%3D%22%230f172a%22%3ED%2FV%20%C3%97%20Rd%3C%2Ftext%3E%3Ctext%20x%3D%22300%22%20y%3D%22176%22%20text-anchor%3D%22middle%22%20font-family%3D%22system-ui%2C-apple-system%2Csans-serif%22%20font-size%3D%2210%22%20fill%3D%22%2364748b%22%3EDebt%20portion%3C%2Ftext%3E%3Cpath%20d%3D%22M%20300%2078%20L%20300%20105.5%20L%20480%20105.5%20L%20480%20133%22%20stroke%3D%22%23cbd5e1%22%20stroke-width%3D%222%22%20fill%3D%22none%22%2F%3E%3Crect%20x%3D%22400%22%20y%3D%22133%22%20width%3D%22160%22%20height%3D%2258%22%20rx%3D%228%22%20fill%3D%22white%22%20stroke%3D%22%230891b2%22%20stroke-width%3D%222%22%2F%3E%3Ctext%20x%3D%22480%22%20y%3D%22158%22%20text-anchor%3D%22middle%22%20font-family%3D%22system-ui%2C-apple-system%2Csans-serif%22%20font-size%3D%2213%22%20font-weight%3D%22600%22%20fill%3D%22%230f172a%22%3E%281%20%E2%88%92%20T%29%3C%2Ftext%3E%3Ctext%20x%3D%22480%22%20y%3D%22176%22%20text-anchor%3D%22middle%22%20font-family%3D%22system-ui%2C-apple-system%2Csans-serif%22%20font-size%3D%2210%22%20fill%3D%22%2364748b%22%3ETax%20shield%3C%2Ftext%3E%3C%2Fsvg%3E) *The four inputs that make up the WACC formula: equity weight, equity cost, debt weight, and after-tax debt cost.* Where: - **E** = Market value of equity - **D** = Market value of debt - **V** = E + D (total market value of capital) - **E/V** = Equity proportion of capital structure - **D/V** = Debt proportion of capital structure - **Re** = [Cost of equity](/blog/cost-of-equity-equation) - **Rd** = Cost of debt (before tax) - **T** = Corporate tax rate ## Breaking Down Each Component ### Cost of Equity (Re) The most complex component. Typically calculated using the Capital Asset Pricing Model (CAPM): **CAPM: Re = Rf + β × (Rm − Rf)** Where: - **Rf** = Risk-free rate (10-year Treasury yield) - **β** (beta) = Stock's sensitivity to market movements - **Rm − Rf** = Market risk premium (excess return of market over risk-free rate) **Example for a large US tech company**: - Rf = 4.3% (10-year Treasury) - β = 1.2 - Market risk premium = 5.5% (Damodaran estimates) - **Re = 4.3% + 1.2 × 5.5% = 10.9%** **Alternative cost of equity approaches**: - **Dividend Discount Model**: Re = (D₁/P₀) + g where D₁ is next year's dividend, P₀ is current price, g is growth rate - **Bond yield + risk premium**: Re = Yield on company bonds + equity risk premium (typically 3-5%) - **Multi-factor models**: Fama-French 3-factor or 5-factor models ### Cost of Debt (Rd) Much simpler to calculate — use the [yield to maturity](/blog/formula-of-ytm) on the company's outstanding debt. **Methods**: - **YTM on existing bonds**: Most accurate for public companies with traded debt - **Current borrowing rate**: Rate the company would pay to issue new debt today - **Interest expense / Total debt**: Approximate — not ideal because it reflects historical rates **Example**: - Company's 10-year bonds trade at a yield of 5.5% - **Rd = 5.5%** (pre-tax) ### The Tax Shield: (1 − T) Interest on debt is tax-deductible in most jurisdictions. This creates a "tax shield" that reduces the effective cost of debt. **Example**: - Pre-tax cost of debt: 5.5% - Corporate tax rate: 21% (US federal) or ~25% (state + federal) - **After-tax cost of debt: 5.5% × (1 − 0.25) = 4.125%** This is why even though debt rates are lower than equity returns, debt's effective cost is further reduced by the tax shield. ### Capital Structure Weights (E/V, D/V) **Use market values, not book values**: - Market value of equity = Share price × [Shares outstanding](/blog/outstanding-stocks-definition) (market capitalization) - Market value of debt = Market price of outstanding debt (for public debt) or book value (reasonable proxy for bank debt) **Example for a company**: - Market cap: $40 billion - Market value of debt: $10 billion - Total capital (V): $50 billion - E/V = 40/50 = 80% - D/V = 10/50 = 20% **Why market values**: WACC is forward-looking — used for evaluating future decisions. Market values reflect current expectations. Book values reflect historical accounting which may not reflect economic reality. ## Complete WACC Calculation Example **Company XYZ**: - Market cap (E): $40B - Debt (D): $10B - Total capital (V): $50B - Beta: 1.2 - Risk-free rate: 4.3% - Market risk premium: 5.5% - Pre-tax cost of debt: 5.5% - Corporate tax rate: 25% ![Cost of equity (10.9%) versus after-tax cost of debt (4.125%) in the Company XYZ example, showing why capital structure weighting matters.](data:image/svg+xml,%3Csvg%20xmlns%3D%22http%3A%2F%2Fwww.w3.org%2F2000%2Fsvg%22%20viewBox%3D%220%200%20800%20210%22%20width%3D%22800%22%20height%3D%22210%22%20role%3D%22img%22%3E%3Ctitle%3EComparison%3C%2Ftitle%3E%3Crect%20width%3D%22100%25%22%20height%3D%22100%25%22%20fill%3D%22%23f8fafc%22%2F%3E%3Ctext%20x%3D%22230%22%20y%3D%2257.5%22%20text-anchor%3D%22end%22%20font-family%3D%22system-ui%2C-apple-system%2Csans-serif%22%20font-size%3D%2214%22%20font-weight%3D%22600%22%20fill%3D%22%230f172a%22%3ECost%20of%20Equity%3C%2Ftext%3E%3Crect%20x%3D%22240%22%20y%3D%2225%22%20width%3D%22450%22%20height%3D%2255%22%20rx%3D%226%22%20fill%3D%22%232563eb%22%2F%3E%3Ctext%20x%3D%22702%22%20y%3D%2257.5%22%20font-family%3D%22system-ui%2C-apple-system%2Csans-serif%22%20font-size%3D%2214%22%20font-weight%3D%22700%22%20fill%3D%22%232563eb%22%3E%2511%3C%2Ftext%3E%3Ctext%20x%3D%22230%22%20y%3D%22152.5%22%20text-anchor%3D%22end%22%20font-family%3D%22system-ui%2C-apple-system%2Csans-serif%22%20font-size%3D%2214%22%20font-weight%3D%22600%22%20fill%3D%22%230f172a%22%3EAfter-tax%20Debt%3C%2Ftext%3E%3Crect%20x%3D%22240%22%20y%3D%22120%22%20width%3D%22170.2981651376147%22%20height%3D%2255%22%20rx%3D%226%22%20fill%3D%22%237c3aed%22%2F%3E%3Ctext%20x%3D%22422.29816513761466%22%20y%3D%22152.5%22%20font-family%3D%22system-ui%2C-apple-system%2Csans-serif%22%20font-size%3D%2214%22%20font-weight%3D%22700%22%20fill%3D%22%237c3aed%22%3E%254.125%3C%2Ftext%3E%3C%2Fsvg%3E) *Cost of equity (10.9%) versus after-tax cost of debt (4.125%) in the Company XYZ example, showing why capital structure weighting matters.* **Step 1**: Calculate cost of equity - Re = 4.3% + 1.2 × 5.5% = 10.9% **Step 2**: Calculate after-tax cost of debt - Rd × (1 − T) = 5.5% × 0.75 = 4.125% **Step 3**: Calculate weights - E/V = 40/50 = 0.80 - D/V = 10/50 = 0.20 **Step 4**: Calculate WACC - **WACC = 0.80 × 10.9% + 0.20 × 4.125% = 8.72% + 0.825% = 9.55%** This company must earn more than 9.55% on new investments to create shareholder value. ## Typical WACC Values by Industry WACC varies substantially by industry, reflecting different capital structures, risk profiles, and growth expectations: | Industry | Typical WACC Range | |---|---| | Utilities | 5-7% | | Consumer staples | 6-8% | | Healthcare (large pharma) | 7-9% | | Financial services | 8-10% | | Industrial | 8-10% | | Consumer discretionary | 8-10% | | Technology (established) | 9-11% | | Technology (high-growth) | 10-13% | | Biotech (early-stage) | 12-18% | | Early-stage startups (pre-IPO) | 15-25% | | Emerging market equity | 10-15% | **Damodaran maintains** comprehensive WACC by industry estimates, updated annually — a commonly referenced source for analysts. ## Common WACC Mistakes ### 1. Using Book Values Instead of Market Values Using accounting book values for equity significantly understates the market value of equity for most established companies. WACC calculated with book values is typically too low — overstating project attractiveness. ### 2. Historical Beta Without Adjustment Raw historical beta may not reflect forward-looking risk. Common adjustments: - Blume's adjustment: Adjusted β = 0.67 × historical β + 0.33 × 1.0 - Reflects tendency for betas to revert toward the market average of 1.0 ### 3. Short-Term Interest Rates for Risk-Free Rate Short-term Treasury rates fluctuate more than equity investor time horizons. Most practitioners use 10-year Treasury (matching 10-year cash flow projections common in DCF). ### 4. Ignoring Debt Tax Shield The after-tax cost of debt matters. Using pre-tax cost of debt produces WACC that's too high — making projects look worse than they actually are. ### 5. Ignoring Operating Leases Pre-ASC 842/[IFRS](https://www.ifrs.org/) 16, operating leases were off-balance-sheet. Now most are capitalized. But historical analysis may need to adjust. ### 6. Using Single Risk Premium Across Divisions A diversified company may have divisions with very different risks. Using a single WACC can lead to: - Over-investing in high-risk divisions (they look better than they are) - Under-investing in low-risk divisions (they look worse) Division-specific WACCs are better for internal capital allocation. ### 7. Assuming Constant WACC Capital structure often changes over time. WACC at acquisition may differ from WACC in the forecast period. Some advanced models use time-varying WACC. ## WACC in DCF Valuation DCF model structure: ![How WACC fits into a five-step DCF valuation to arrive at intrinsic value per share.](data:image/svg+xml,%3Csvg%20xmlns%3D%22http%3A%2F%2Fwww.w3.org%2F2000%2Fsvg%22%20viewBox%3D%220%200%201090%20125%22%20width%3D%221090%22%20height%3D%22125%22%20role%3D%22img%22%3E%3Ctitle%3EFlow%20diagram%3C%2Ftitle%3E%3Crect%20width%3D%22100%25%22%20height%3D%22100%25%22%20fill%3D%22%23f8fafc%22%2F%3E%3Crect%20x%3D%2230%22%20y%3D%2225%22%20width%3D%22170%22%20height%3D%2275%22%20rx%3D%2210%22%20fill%3D%22white%22%20stroke%3D%22%232563eb%22%20stroke-width%3D%222%22%2F%3E%3Ctext%20x%3D%22115%22%20y%3D%2258.5%22%20text-anchor%3D%22middle%22%20font-family%3D%22system-ui%2C-apple-system%2Csans-serif%22%20font-size%3D%2214%22%20font-weight%3D%22600%22%20fill%3D%22%230f172a%22%3EForecast%20FCF%3C%2Ftext%3E%3Ctext%20x%3D%22115%22%20y%3D%2278.5%22%20text-anchor%3D%22middle%22%20font-family%3D%22system-ui%2C-apple-system%2Csans-serif%22%20font-size%3D%2211%22%20fill%3D%22%2364748b%22%3E5%E2%80%9310%20years%3C%2Ftext%3E%3Cline%20x1%3D%22205%22%20y1%3D%2262.5%22%20x2%3D%22237%22%20y2%3D%2262.5%22%20stroke%3D%22%2364748b%22%20stroke-width%3D%222%22%2F%3E%3Cpolygon%20points%3D%22244%2C62.5%20235%2C57.5%20235%2C67.5%22%20fill%3D%22%2364748b%22%2F%3E%3Crect%20x%3D%22245%22%20y%3D%2225%22%20width%3D%22170%22%20height%3D%2275%22%20rx%3D%2210%22%20fill%3D%22white%22%20stroke%3D%22%232563eb%22%20stroke-width%3D%222%22%2F%3E%3Ctext%20x%3D%22330%22%20y%3D%2258.5%22%20text-anchor%3D%22middle%22%20font-family%3D%22system-ui%2C-apple-system%2Csans-serif%22%20font-size%3D%2214%22%20font-weight%3D%22600%22%20fill%3D%22%230f172a%22%3ETerminal%20Value%3C%2Ftext%3E%3Ctext%20x%3D%22330%22%20y%3D%2278.5%22%20text-anchor%3D%22middle%22%20font-family%3D%22system-ui%2C-apple-system%2Csans-serif%22%20font-size%3D%2211%22%20fill%3D%22%2364748b%22%3EPerpetuity%2Fexit%3C%2Ftext%3E%3Cline%20x1%3D%22420%22%20y1%3D%2262.5%22%20x2%3D%22452%22%20y2%3D%2262.5%22%20stroke%3D%22%2364748b%22%20stroke-width%3D%222%22%2F%3E%3Cpolygon%20points%3D%22459%2C62.5%20450%2C57.5%20450%2C67.5%22%20fill%3D%22%2364748b%22%2F%3E%3Crect%20x%3D%22460%22%20y%3D%2225%22%20width%3D%22170%22%20height%3D%2275%22%20rx%3D%2210%22%20fill%3D%22white%22%20stroke%3D%22%232563eb%22%20stroke-width%3D%222%22%2F%3E%3Ctext%20x%3D%22545%22%20y%3D%2258.5%22%20text-anchor%3D%22middle%22%20font-family%3D%22system-ui%2C-apple-system%2Csans-serif%22%20font-size%3D%2214%22%20font-weight%3D%22600%22%20fill%3D%22%230f172a%22%3EDiscount%20at%20WACC%3C%2Ftext%3E%3Ctext%20x%3D%22545%22%20y%3D%2278.5%22%20text-anchor%3D%22middle%22%20font-family%3D%22system-ui%2C-apple-system%2Csans-serif%22%20font-size%3D%2211%22%20fill%3D%22%2364748b%22%3ETo%20present%20value%3C%2Ftext%3E%3Cline%20x1%3D%22635%22%20y1%3D%2262.5%22%20x2%3D%22667%22%20y2%3D%2262.5%22%20stroke%3D%22%2364748b%22%20stroke-width%3D%222%22%2F%3E%3Cpolygon%20points%3D%22674%2C62.5%20665%2C57.5%20665%2C67.5%22%20fill%3D%22%2364748b%22%2F%3E%3Crect%20x%3D%22675%22%20y%3D%2225%22%20width%3D%22170%22%20height%3D%2275%22%20rx%3D%2210%22%20fill%3D%22white%22%20stroke%3D%22%232563eb%22%20stroke-width%3D%222%22%2F%3E%3Ctext%20x%3D%22760%22%20y%3D%2258.5%22%20text-anchor%3D%22middle%22%20font-family%3D%22system-ui%2C-apple-system%2Csans-serif%22%20font-size%3D%2214%22%20font-weight%3D%22600%22%20fill%3D%22%230f172a%22%3ESubtract%20Debt%3C%2Ftext%3E%3Ctext%20x%3D%22760%22%20y%3D%2278.5%22%20text-anchor%3D%22middle%22%20font-family%3D%22system-ui%2C-apple-system%2Csans-serif%22%20font-size%3D%2211%22%20fill%3D%22%2364748b%22%3ENon-equity%20claims%3C%2Ftext%3E%3Cline%20x1%3D%22850%22%20y1%3D%2262.5%22%20x2%3D%22882%22%20y2%3D%2262.5%22%20stroke%3D%22%2364748b%22%20stroke-width%3D%222%22%2F%3E%3Cpolygon%20points%3D%22889%2C62.5%20880%2C57.5%20880%2C67.5%22%20fill%3D%22%2364748b%22%2F%3E%3Crect%20x%3D%22890%22%20y%3D%2225%22%20width%3D%22170%22%20height%3D%2275%22%20rx%3D%2210%22%20fill%3D%22white%22%20stroke%3D%22%232563eb%22%20stroke-width%3D%222%22%2F%3E%3Ctext%20x%3D%22975%22%20y%3D%2258.5%22%20text-anchor%3D%22middle%22%20font-family%3D%22system-ui%2C-apple-system%2Csans-serif%22%20font-size%3D%2214%22%20font-weight%3D%22600%22%20fill%3D%22%230f172a%22%3EEquity%20Value%3C%2Ftext%3E%3Ctext%20x%3D%22975%22%20y%3D%2278.5%22%20text-anchor%3D%22middle%22%20font-family%3D%22system-ui%2C-apple-system%2Csans-serif%22%20font-size%3D%2211%22%20fill%3D%22%2364748b%22%3EPer%20share%3C%2Ftext%3E%3C%2Fsvg%3E) *How WACC fits into a five-step DCF valuation to arrive at intrinsic value per share.* **1. Forecast free cash flows (FCF)** for 5-10 years **2. Forecast terminal value** using perpetuity growth model or exit multiple **3. Discount all cash flows to present value at WACC** **4. Subtract debt and other non-equity claims** **5. Divide by shares outstanding → Intrinsic value per share** **Example**: - Year 1 FCF: $100M - Year 2 FCF: $110M - Terminal value: $1,500M - WACC: 10% - PV Year 1: $100M / 1.10 = $90.9M - PV Year 2: $110M / 1.10² = $90.9M - PV Terminal: $1,500M / 1.10² = $1,239.7M - **Total enterprise value: $90.9M + $90.9M + $1,239.7M = $1,421.5M** Changing WACC from 10% to 9% in this example increases EV by roughly 8%. DCF valuation is highly sensitive to WACC — small differences compound. ## WACC vs. Cost of Equity for Valuation Both are used in different contexts: **WACC**: Used when valuing the **entire firm** (enterprise value = all cash flows available to all capital providers). **Cost of Equity**: Used when valuing **just the equity** (using [free cash flow](/blog/cashflow-free) to equity, which is cash flow available to shareholders after debt service). For FCFE models: discount FCFE at cost of equity. For FCFF models: discount FCFF at WACC, subtract debt to get equity value. Both approaches should produce the same equity value if consistent. ## Limitations of WACC **1. Assumes constant capital structure**: In reality, companies target but don't always maintain specific ratios. **2. Assumes efficient markets**: Market prices may not reflect intrinsic value. **3. Point estimates for probabilistic inputs**: Risk-free rate and market risk premium are uncertain. **4. Ignores contingent claims**: Convertible debt, preferred stock require special handling. **5. No distinction for emerging markets**: Country risk premium should be added for emerging market operations. **6. Beta estimates are historical**: Future systematic risk may differ from past. ## Sensitivity Analysis Because WACC affects valuation significantly, sensitivity tables are standard: | Growth Rate | WACC = 8% | WACC = 9% | WACC = 10% | WACC = 11% | |---|---|---|---|---| | 2% | $182.00 | $155.50 | $135.71 | $120.00 | | 3% | $210.00 | $175.00 | $150.00 | $130.91 | | 4% | $250.00 | $200.00 | $166.67 | $142.86 | This table (illustrative) shows how sensitive valuation is to both the discount rate (WACC) and terminal growth assumption. The range of outputs reveals the uncertainty in any DCF. ## Authoritative Sources For deeper background and primary-source data on this topic, the following authoritative sources are useful starting points: - [IRS](https://www.irs.gov/) - [SEC](https://www.sec.gov/) ## Conclusion WACC is simultaneously one of the most important and most misused concepts in corporate finance. The formula is straightforward, but each input (cost of equity, cost of debt, capital structure weights, tax rate) requires judgment and careful estimation. The sensitivity of valuation to WACC makes it worth getting right — but also means any DCF output should be viewed as a range rather than a precise number. For investors, recognizing that companies operate at different WACCs (based on risk, leverage, and industry) helps avoid apples-to-oranges comparisons and grounds valuation in the fundamental economics of capital costs. For related financial analysis topics, see our guides on [return on equity](/blog/return-on-equity), [leverage (gearing) ratios](/blog/leverage-gearing-ratio), and [CAGR formula](/blog/cagr-formula). Warren at [heywarren.ai](https://heywarren.ai) helps investors estimate WACC, calculate intrinsic value, and identify stocks trading below their discounted cash flow value. --- ## Related Reading **More from Warren**: **Authoritative sources**: - [SEC Investor.gov — Investing Basics](https://www.investor.gov/introduction-investing/investing-basics) - [FINRA — Investor Education](https://www.finra.org/investors)