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

Fundamental Analysis

 

Fundamental analysis is the process of evaluating a company’s true value by looking at its business performance, financial health, and broader economic conditions.

 

The goal is to figure out whether a stock is undervalued (a bargain), overvalued (too expensive), or fairly priced—so investors can make more informed decisions.

 

This method is often used by long-term investors who want to buy quality companies at a good price and hold them as they grow.

 

 

What Does Fundamental Analysis Look At?

 

Unlike technical analysis, which focuses on charts and price movements, fundamental analysis looks at the company itself — how it makes money, how strong its finances are, and what its future might look like.

 

Here’s an overview of the key factors that fundamental analysts study:

 

 

Key Components of Fundamental Analysis

 

  1. Revenue (Sales)

    • How much money is the company bringing in from selling its products or services?

  2. Profit (Net Income)

    • After expenses, how much of that revenue is left as actual profit?

  3. Earnings Per Share (EPS)

    • A measure of how much profit is earned per share of stock.

  4. Price-to-Earnings (P/E) Ratio

    • Compares a company’s current stock price to its earnings. A basic measure of valuation.

  5. Debt Levels

    • How much money does the company owe? Is it manageable?

  6. Assets and Liabilities (Balance Sheet Health)

    • What the company owns vs. what it owes — a snapshot of financial strength.

  7. Cash Flow

    • Is the business generating steady, real cash — or just accounting profits?

  8. Dividend Yield and Payout Ratio

    • Does the company pay dividends? How much? Can it afford to keep paying them?

  9. Growth Rate

    • Is the company growing in revenue, earnings, or market share?

  10. Competitive Advantage (“Moat”)

  • What makes this business stand out from its competitors? Is it sustainable?

  1. Management Quality

  • Are the people running the company experienced, trustworthy, and shareholder-friendly?

  1. Industry and Sector Trends

  • Is the industry growing or declining? What external factors could affect the company?

  1. Economic Conditions

  • How do interest rates, inflation, and global events impact the business?

  1. Company News and Events

  • Mergers, lawsuits, product launches, or scandals can all affect valuation.

 

 

What’s the Goal?

 

The goal of fundamental analysis is to find companies that are:

  • Financially strong

  • Well-managed

  • Likely to grow or maintain earnings over time

  • Trading at a fair or discounted price

 

This helps investors decide which stocks to buy, hold, or avoid.

 

In the next sections, we’ll take a deeper look at each of these components — starting with Revenue and Profit.

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Stock Market Course