Course Content
Introduction
The stock market is a marketplace where shares of publicly listed companies are bought and sold. It plays a central role in the modern economy, acting as a bridge between businesses that need capital and investors who have money to invest. The origins of the stock market trace back to the early 1600s, when the Dutch East India Company issued the first shares on the Amsterdam Stock Exchange. This allowed the company to raise money from the public to fund its trade ventures, in return for a share of the profits. Over time, this concept evolved, and today, stock markets exist all over the world, with major exchanges like the New York Stock Exchange (NYSE), NASDAQ, and London Stock Exchange facilitating trillions of dollars in trade. At its core, the stock market enables businesses to grow. By offering shares to the public through a process called an Initial Public Offering (IPO), companies can raise large amounts of money to expand operations, invest in research, or develop new products—without having to rely solely on banks or private lenders. In return, investors get the opportunity to share in the company’s success through rising share prices and dividends. Investing in the stock market can be a powerful way to build wealth over time. Wise investments in strong companies can generate solid returns, especially when held for the long term. Many individuals have grown their savings substantially by investing in companies that have thrived. However, it’s important to remember that the stock market carries risks. Prices can go up, but they can also go down—sometimes sharply. Economic downturns, company mismanagement, or shifts in the global market can all lead to losses. For beginners, it's essential to approach investing with caution, avoid chasing “get rich quick” schemes, and take the time to understand what you're investing in. In short, the stock market is a powerful tool for economic growth and personal financial development—but like all tools, it must be used wisely.
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Introduction
Stock Markets Around The World
Listing On A Stock Market
How Stocks are Bought and Sold
Trade Date vs Settlement Date, What is T + 2?
What Is A Stock Market Index?
ETF’s and Index Funds
Fundamental Analysis
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Fundamental Analysis Introduction
Understanding Revenue and Profit
Earnings Per Share and PE Ratio
Understanding the Balance Sheet
Understanding Cashflow
Dividends – How Investors Earn Income From Their Shares
What Causes Stock Prices To Rise And Fall
Understanding Market Capitalization
Technical Analysis
Along with Fundamental Analysis, Investors increasingly rely on Technical Analysis to decide whether to buy or sell a stock. Here we will explore the main techniques.
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Introduction to Technical Analysis
How To Read A Price Chart – The Basics
Understanding Support and Resistance Levels
Identifying Trends and Drawing Trendlines
Understanding Moving Averages
Introduction to Momentum Indicators
Chart Patterns – Spotting Setups in the Market
Volume – The Power Behind a Price Movement
Investing Safely and Profitably
How do professionals invest safely and profitably? Some key concepts such as position sizing and stop losses.
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How To Place Trades And Manage Risk
Using A Trailing Stop To Protect Profits and Limit Loss
Diversification and Portfolio Management
Taking Profits
Common Investor Mistakes And How To Avoid Them
A Quick Word On Taxes
Summary and Beginner’s Checklist
10 Must Read Books for Investors and Traders
Beginners guide to investing in the Stock Market

What Are ETFs and Index Funds?

 

ETFs (Exchange-Traded Funds) and Index Funds are simple, powerful tools that let you invest in a wide range of stocks all at once — instead of trying to pick individual winners. They are especially popular with beginner and long-term investors.

 

 

What Are They, Exactly?

 

Both ETFs and Index Funds are types of “funds” — pools of money collected from many investors, which are used to buy a diversified mix of stocks (or sometimes bonds, commodities, or other assets).

Instead of buying one company like Apple or BHP, you can buy a fund that includes hundreds of companies — spreading out your risk.

 

 

Index Funds – Long-Term & Low Maintenance

 

  • An Index Fund is a type of mutual fund designed to track a specific index, like the S&P 500 or ASX 200.

  • You invest money into the fund, and it automatically follows the index — no active management.

  • Managed by companies like Vanguard, BlackRock, or Fidelity.

 

Example:
If you buy a fund that tracks the S&P 500, you’re effectively investing in 500 of the biggest U.S. companies.

 

Key Traits:

  • Purchased once per day (not traded throughout the day)

  • Usually held for the long term

  • Great for retirement or slow-and-steady growth

  • Very low fees (often under 0.1%)

 

 

ETFs – Flexible & Traded Like Stocks

 

  • An ETF (Exchange-Traded Fund) is similar to an index fund, but it’s traded on the stock exchange, just like any other stock.

  • You can buy and sell it during the trading day, and the price fluctuates throughout the day.

 

Example:
“VAS” is a popular Australian ETF that tracks the ASX 300 Index — buying it gives you exposure to 300 of Australia’s biggest companies.

 

Key Traits:

  • Easy to buy/sell through your trading platform

  • Great for both short- and long-term investing

  • Also very low fees

  • You can invest with small amounts

 

 

Why Investors Love Them

 

  1. Diversification – You spread your investment across many companies, reducing risk.

  2. Low Fees – Much cheaper than paying a fund manager to pick stocks.

  3. Simple – You don’t need to research individual companies.

  4. Reliable Growth – Indexes like the S&P 500 have historically grown steadily over time.

 

 

ETFs vs Index Funds – Key Differences

Feature ETF Index Fund
Traded During Day ✅ Yes ❌ No (once daily)
Minimum Investment Low Often higher
Best For Flexibility + Low Fees Long-term, set-and-forget
Fees Very Low Very Low
Buy Through Broker / Trading Platform Fund Company / Broker
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Stock Market Course