
An introduction to the stock market.
Attached: a worksheet for those who want to practice applying the concepts and a lesson plan for teachers who wish to incorporate these concepts into their curriculum.
Clarifying the difference between the terms "stock" and "share".
Defining market capitalization, how to determine it, and how it impacts investment.
Further explanation on how stock investment becomes profitable by comparing it to high school cliques. Anyone who comprehends how stock investment yields profits can skip this section.
An explanation of volatility and how it impacts stock price.
Explaining what it means to Invest in the commodities market.
A look at how brokerage accounts work and how to buy stocks with them.
Clarifying what market orders, limit orders and stop orders are.
Explaining how to invest in bonds and how they differ from stocks.
An explanation for how dividends work as an additional source of income.
Explaining what diversification means and why some people recommend that investors embrace it.
Distinguishing what makes investing different from typical gambling.
Explaining the difference between investing in debt versus investing in equity.
Exploring why businesses choose to sell stock rather than remain privately owned.
Looking at the difference between bull markets and bear markets.
Explaining how investing in derivatives works, with a focus on investing in options contracts.
Explaining how futures contracts differ from options contracts.
Defining the concept of short-selling stock and looking at a real-world example of how investors tried to use it against the video-game retailer, GameStop.
A quick review of stocks, bonds, futures and options.
A look at what happens to investors when a company goes bankrupt.
Explaining the difference between common stock and preferred stock.
A look at different classes of stock and why companies may use them.
An explanation of what hostile takeovers are and how they occur.
Explaining the difference between North America's two largest stock exchanges, the New York Stock Exchange and NASDAQ.
Profiling what the SEC does, discussing what insider trading is, and providing a real-world example involving TV personality Martha Stewart.
A look at penny stocks and the OTC markets.
What to look for when trying to choose companies to invest in.
Explaining how inflation can impact investments and overall profitability.
A few closing remarks.
Investment is key to how many people build their fortunes. After all, wealthy people do not get rich through hard work as often as they get rich through smart work. As so many of us toil long days, working late at the office, trying to save every penny we can, there are others who have their money working for them. But this isn't a concept exclusive to the wealthy. Anyone can do it and the stock market represents one area in which normal people can have their money "work for them".
Although most people are aware of the stock market, few actually understand it. This class hopes to fix that. We will simplify the fundamentals of securities investment so that you become part of the "enlightened minority". The course covers stocks vs. shares, market capitalization; the pros and cons of different security investments (including stocks, bonds, and options); futures contracts vs. options contracts, how to earn derivative payments, how to differentiate between common and preferred stock; the difference between primary and secondary markets; shorting a stock, and the appeal and danger of penny stocks. These terms and concepts can come across as overly-complicated at first, but our goal is to make them easy to understand in hopes that all of our students can confidently begin engaging with the stock investment.
This course serves as a definitive introduction to how the stock market works. If you don't "get it" now, you certainly will by the end of this class. Welcome to the world of Wall Street.