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Stock Markets Explained: A Complete Beginner's Guide
54 students

Stock Markets Explained: A Complete Beginner's Guide

Learn how stock markets work: valuation, dividends, risk, diversification, and primary vs secondary markets explained
Created byEric Kang
Last updated 6/2026
English
English

What you'll learn

  • Understand how stock markets function as part of the broader financial system and how prices are formed through supply and demand.
  • Develop a clear understanding of how stocks are traded, how equity markets operate, and how investors participate in real markets.
  • Explain the key drivers of stock prices, including fundamentals, market sentiment, and macroeconomic influences.
  • Apply stock market knowledge to interpret real-world price movements, financial news, and market behaviour.

Course content

2 sections6 lectures1h 30m total length
  • Welcome to Financial Markets: Stock Markets Course2:17

    Explore equity markets, including ordinary and preferred shares, dividends, and diversification of risk; apply dividend discount models like Gordon Growth Model to value stocks and study primary and secondary markets.

Requirements

  • No prior finance or economics knowledge is required; this course is designed for beginners.
  • Basic familiarity with general learning or academic content is helpful but not necessary.
  • A computer with internet access to follow lectures and examples.

Description

This module forms part of the full course “Global Financial Markets 2026: The Definitive Guide.” It is designed to provide learners with a clear and structured introduction to stock markets, equity securities, valuation principles, and investment fundamentals.

Stock markets play a central role in the modern financial system, yet many people find them confusing due to technical terminology, complex pricing concepts, and the vast amount of information available. This module simplifies these topics by explaining them in a logical, practical, and easy-to-understand way.

In this module, you will learn how stock markets operate and why they are essential for both companies and investors. You will explore the characteristics of ordinary shares, including shareholder rights such as dividends and voting power, and understand how equity differs from other financial instruments. You will also examine preference shares and their unique characteristics as hybrid securities.

The course introduces key concepts in stock valuation, including the constant-growth Dividend Discount Model and the calculation of stock returns. You will learn how investors evaluate equity investments and how expectations about future cash flows influence market prices.

In addition, you will explore the relationship between risk and return, including the distinction between systematic and unsystematic risk. You will also learn how diversification can help reduce portfolio risk and improve investment decision-making.

The module further examines primary and secondary markets, explaining how companies raise capital through equity issuance and how investors trade shares in organized financial markets. Understanding these market structures provides valuable insight into how capital flows through the economy.

By the end of this module, you will be able to interpret stock market activity more confidently, understand fundamental investment concepts, and develop a structured framework for analyzing equity markets.

Students who find this module valuable are encouraged to continue with the full course, where stock markets are connected to bonds, derivatives, banking systems, and the broader global financial system.

Who this course is for:

  • Beginner learners who want to understand how stock markets work in a clear and structured way.
  • Intermediate learners who already have some exposure to finance and want a stronger conceptual understanding of equity markets.
  • Advanced learners, students, or professionals who want a clearer system-level understanding of stock market behaviour and price formation.