How the Stock Market Works

Course Description
Discover the opportunities and risks of stock investing with this comprehensive course. Learn how stock markets operate, why prices rise and fall, and how to invest with confidence—without losing sleep.

What You’ll Learn in the Course

• The fundamentals of stocks, bonds, and securities.

• The relationship between risk, returns, and diversification.

• How financial reporting and corporate valuation affect investment decisions.

• Practical strategies for trading, minimizing taxes, and using retirement accounts.

• How IPOs, economic forces, and the Federal Reserve influence markets.

---

Lessons

01: Is Investing in Your Blood? — 33 min
Learn the difference between beating the market and investing in it, and why predictability is so elusive.

02: Understanding Fundamental Securities — 31 min
Compare stocks and bonds through simple analogies and explore how they share corporate assets and cash flow.

03: What Is the Stock Market? — 29 min
Uncover how stock markets resemble everyday markets and understand their unique features.

04: Historical Returns and Volatility — 31 min
Analyze the balance between long-term returns and short-term volatility that unnerves investors.

05: Risk, Expected Return, and Diversification — 30 min
Discover strategies for balancing risk and reward and improving your long-term investment outcomes.

06: What Determines How Much You’ll Make — 29 min
Explore the power of compounding and the three variables that dictate investment outcomes.

07: The Efficient Market Hypothesis — 29 min
Examine why consistently beating the market is nearly impossible, even for professionals.

08: Choosing a Brokerage Firm — 30 min
Learn the steps to selecting a brokerage that fits your needs, and clear up common misconceptions.

09: Trading and Investing Basics — 31 min
Understand how trades are made, order types, and the mechanics of short selling.

10: Trading Strategies and Common Mistakes — 30 min
Review trading strategies, pitfalls like overconfidence and loss aversion, and an introduction to options.

11: The Language of Financial Reporting — 30 min
Break down balance sheets, income statements, and cash flow reports to understand corporate health.

12: Corporate Analysis and Valuation — 33 min
Study methods for valuing companies, including P/E ratio, book value, and liquidation value.

13: Mutual Funds and Other Investment Companies — 32 min
Compare managed funds, index funds, and ETFs to identify the best fit for your goals.

14: Minimizing Transaction Costs and Taxes — 31 min
Learn strategies to reduce costs and taxes while maximizing long-term gains.

15: Tax Shelters – Roths, IRAs, and 401(k) Plans — 33 min
Explore retirement accounts and their tax advantages for every type of investor.

16: Making Sense of IPOs — 31 min
Discover how IPOs work, how share prices are set, and what risks are involved.

17: The Stock Market and the Macro Economy — 31 min
Understand how recessions, global events, and Federal Reserve decisions affect investments.

18: Investing with Confidence — 31 min
Finish by learning how to assess your financial position and build a diversified portfolio.