Stock Market Foundation Course content
Requirements
- No Previous Skills or Knowledge Required
- Willingness to Learn
- Positive Attitude
The Stock Market Foundations Course is a new and interactive way to gain market mastery. Designed to educate beginners about the stock market, the course shows how it works, the components of the market, and most importantly, its inner workings. This is the stock market course to take before any other trading or investing course.
Stock Market Foundation Course Syllbus
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- Definition
- Savings refer to money set aside for future use, typically in low-risk and easily accessible accounts.
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- Purpose
- The primary goal of saving is to accumulate funds for short-term or emergency needs. This could include building an emergency fund, saving for a vacation, or covering unexpected expenses.
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- Safety
- Savings are usually kept in low-risk, liquid accounts like savings accounts or certificates of deposit (CDs).
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- Liquidity
- Easily accessible, allowing quick withdrawal of funds without much impact on value.
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- Definition
- Investments involve allocating money with the expectation of generating a return over the long term. This typically involves some level of risk.
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- Purpose
- The main purpose of investing is to grow wealth over time. Investments can include stocks, bonds, real estate, mutual funds, and other assets that have the potential for capital appreciation and income generation.
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- Mutual Funds
- Mutual funds pool money from multiple investors to invest in a diversified portfolio of stocks, bonds, or other securities managed by a professional fund manager.
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- Bonds
- Bonds are debt securities where investors lend money to an entity (government, corporation) in exchange for periodic interest payments and the return of the principal at maturity.
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- Stocks (Equities)
- Stocks represent ownership in a company, and shareholders participate in the company's profits through dividends and capital appreciation.
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- Exchange-Traded Funds (ETFs)
- ETFs are investment funds that are traded on stock exchanges, similar to stocks, and typically track an index or a basket of assets.
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- Real Estate Investment Trusts (REITs)
- REITs are companies that own, operate, or finance income-generating real estate across various sectors.
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- Certificate of Deposit (CD)
- A CD is a time deposit with a fixed term and interest rate, offered by banks.
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- Full Name
- BSE Sensex (Bombay Stock Exchange Sensitive Index)
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- Full Name
- NSE Nifty (National Stock Exchange Fifty)
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- Purpose Sensex
- The Sensex is often used as a benchmark to assess the overall performance of the Indian stock market. It reflects the sentiment and health of the country's financial markets.
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- Purpose: Nifty
- Nifty is widely used as a benchmark for the Indian equity market and is considered a key indicator of the performance of large-cap companies listed on the NSE.
An Initial Public Offering (IPO) is the process through which a private company becomes a publicly traded company by offering its shares to the general public for the first time. In other words, it is the first sale of stock by a company to the public, leading to its transition from being privately held to being publicly traded on a stock exchange.
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- Preparation
- The company interested in going public works with investment banks to prepare the necessary documents, such as a prospectus, which provides detailed information about the company's financial performance, business model, and other relevant information.
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- Regulatory Approval
- The company must file the required paperwork with regulatory bodies, such as the Securities and Exchange Commission (SEC) in the United States. These agencies review the documents to ensure that they provide accurate and complete information to potential investors.
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- Setting the IPO Price
- The company, with the help of investment banks, determines the initial offering price for its shares. This price is based on various factors, including the company's financial performance, market conditions, and investor demand.
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- Post-IPO
- After the IPO, the company becomes subject to public reporting requirements, and its financial performance and other information are regularly disclosed to the public. The company's shares continue to be traded on the stock exchange.
An Initial Public Offering (IPO) is the process through which a private company becomes a publicly traded company by offering its shares to the general public for the first time. In other words, it is the first sale of stock by a company to the public, leading to its transition from being privately held to being publicly traded on a stock exchange.
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- Bullish Market
- A bullish market, or a "bull market," is characterized by rising prices and optimism among investors. In a bullish market, there is a general belief that the value of financial instruments, such as stocks or other securities, will continue to rise.
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- Bearish Market
- A bearish market, or a "bear market," is marked by falling prices and a prevailing sense of pessimism among investors. In a bearish market, there is a widespread belief that the value of financial instruments will continue to decline.
Market capitalization, often referred to as market cap, is a measure of the total market value of a publicly traded company's outstanding shares of stock. It is calculated by multiplying the current market price per share by the total number of outstanding shares. Market capitalization provides a snapshot of a company's size and is widely used by investors to assess the relative size of different companies in the market.
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- Current Market Price per Share
- This is the latest price at which the company's stock is trading on the stock market. It represents the market's valuation of each share of the company at a specific point in time.
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- Total Outstanding Shares
- This refers to the total number of shares of a company's stock that have been issued and are held by investors. Outstanding shares include those held by institutional investors, retail investors, insiders, and employees..
The stock market is influenced by a wide range of factors, and its movements are the result of complex interactions among various economic, financial, and psychological elements.
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- Economic Indicators
- Gross Domestic Product (GDP): The overall health of the economy, as measured by GDP, can impact the stock market. A growing economy generally supports higher corporate profits, which can boost stock prices.
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- Interest Rates
- Central Bank Policies: Actions and statements from central banks, such as the U.S. Federal Reserve, regarding interest rates can significantly impact the stock market. Changes in interest rates affect the cost of borrowing, corporate profits, and investor sentiment.
