Stock Market Expectations

Methodology Lesson 12 Stock Market Expectations When people become interested in investing for the first time, they often have crazy expectations with regard to how much money they will make from the stock market. It’s fairly common for people to think that they can double their money in a year or even better. A flaw […]

How you can invest

Methodology Lesson 11 How you can invest Now that you know a thing or two about investing, you may be wondering how on earth you can actually make investments. As you can imagine, there are endless organisations that you can invest with as the industry is very competitive. Your relationship with the organisation you invest […]

Building a Portfolio

Methodology Lesson 10 Building a Portfolio Once you are ready to start investing, building your own portfolio should be on the agenda. It goes without saying that owning more than one stock is a priority as diversification is key for reducing risk and protecting your investments. If an investor doesn’t diversify well enough, significant sums […]

Simple valuation methods

Methodology Lesson 9 Simple valuation methods The most difficult aspect of investment is knowing when to buy and when to sell. The only way to truly know whether an investment is worthwhile or not is to take advantage of valuation methods. There are number of basic valuation methods that are regularly used in finance to […]

Characteristics of stocks

Methodology Lesson 8 Characteristics of stocks Stocks that are listed on a stock exchange are not all the same, the have different characteristics. Those characteristics can have a significant impact upon the performance that you might expect from a stock. When making investments in the stock market, it’s important to be aware of those differences […]

Why companies list on a stock market

Methodology Lesson 7 Why companies list on a stock market One of the fundamental theories in finance is called Pecking Order Theory. The theory outlines that companies have three main financing options and that there is a specific order as to which is the most beneficial to the company. Using the company’s own cash is […]

How to make money with stocks

Methodology Lesson 6 How to make money from stocks Whenever you hear about the money that investors make from the stock market, you’ll usually hear one of two stories. The first is of the millions or billions that investors have made from the market. The other is of investors that have failed miserably and lost […]

Stock Market Index

Methodology Lesson 5 Stock Market Index In the previous lesson, we explained what stock exchanges are and how they operate. In this class, we will predominantly talk about stock market indices. Stock market indices are one of the most visually recognisable features of a stock exchange as they are often used on the news, in […]

What is a stock exchange?

Methodology Lesson 4 What is a Stock Exchange? A stock exchange, in simple terms, is an intermediary between organisations, brokers and investors. Stocks are not owned by stock exchanges, they are simply traded from one party to another. Stock exchanges are centralised platforms that bring all interested parties together. They allow companies to sell financial […]

Understanding Stock Prices

Methodology Lesson 3 Understanding Stock Prices One of the most common mistakes that people make when  it comes to stock prices is that they assume that stocks with higher prices are worth more. If stock A is priced at $40 and stock B is priced at $80, most people think that stock B is more […]