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

How Stocks are Bought and Sold

 

When people talk about “trading on the stock market,” they’re referring to the buying and selling of shares (stocks) in publicly listed companies. This process takes place through stock exchanges, using brokers or online platforms. Here’s how it all works:

 

 

Buying Stocks – Step by Step

 

  1. Open a Brokerage Account
    To buy or sell stocks, you need to use a stockbroker—either a traditional firm or an online trading platform like eToro, CommSec (Australia), Robinhood (USA), Interactive Brokers, or others depending on your country.

    • You deposit money into the account.

    • Then you’re ready to place trades.

  2. Choose the Stock
    Investors research companies and choose stocks they believe will grow in value or pay good dividends.

  3. Place an Order
    There are different types of orders:

    • Market Order: Buys or sells immediately at the best available price.

    • Limit Order: Buys or sells only at a specified price or better.

    • Stop Order: Becomes a market order once a stock hits a certain price.

  4. Trade Execution
    Once you place the order, it goes to the exchange through your broker and gets matched with someone else who is selling (or buying).

    • This usually happens in seconds.

 

 

Selling Stocks

 

Selling works just like buying—but in reverse:

  • You decide how many shares to sell.

  • You place a sell order.

  • If there’s a buyer at your price, the trade is completed.

 

People sell stocks to take profits, cut losses, or re-balance their portfolios.

 

 

Behind the Scenes – How the Market Works

 

  • The Stock Exchange is where the action happens. Buyers and sellers are constantly trading shares through electronic systems.

  • Every stock has a bid price (what buyers will pay) and an ask price (what sellers want).

  • The difference between them is called the spread.

 

When a trade happens, it means someone agreed to buy at the seller’s price or sell at the buyer’s price.

 

 

Who’s Involved?

 

  • Retail Investors – Everyday individuals using online platforms.

  • Institutional Investors – Banks, mutual funds, hedge funds.

  • Market Makers – Firms that help keep trades flowing by always offering to buy or sell stocks, earning money from the spread.

 

 

When Can You Trade?

 

Most stock markets are only open on weekdays during specific hours. For example:

 

  • NYSE/NASDAQ (USA): 9:30 AM – 4:00 PM (Eastern Time)

  • ASX (Australia): 10:00 AM – 4:00 PM (Sydney Time)

  • Some platforms also offer after-hours trading, but it’s usually riskier due to lower liquidity.

 

 

Buying & Selling in Action – An Example

 

Let’s say you want to buy 10 shares of Apple at $200 per share:

 

  • You place a market order.

  • The system finds someone selling 10 shares at $200.

  • The trade is matched, and now you own 10 shares of Apple.

 

If Apple’s price goes up to $240 and you sell, you’ve made $400 profit (10 x $40), not including fees or taxes.

 

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Stock Market Course