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

Understanding Revenue and Profit

 

Listed companies release their financial statements every 6 months. This is the first place most investors look when evaluating a company. Starting with the profit and loss statement and two key figures: Revenue and Profit.

 

 

Revenue – The Top Line

 

Revenue is the total amount of money a company earns from selling its products or services, before any costs are deducted.

  • Also called Sales or Turnover.

  • Found at the very top of a company’s income statement — hence the term “top line”.

 

Example:
If a business sells 100,000 shoes at $100 each, revenue = $10 million.

 

Why It Matters:

  • Shows the size and scale of the company.

  • Growth in revenue can signal rising demand or market expansion.

  • Falling revenue could mean trouble — fewer customers or shrinking market share.

 

 

Profit – The Bottom Line

 

Profit (also called Net Income) is what’s left after the company pays all its costs — including wages, rent, materials, interest, and taxes.

  • It appears at the bottom of the income statement — hence “bottom line”.

  • It tells you whether the company is actually making money after expenses.

 

There are a few types of profit you might see:

  1. Gross Profit – Revenue minus cost of goods sold.

  2. Operating Profit – Profit from core business activities.

  3. Net Profit – Final profit after all expenses.

 

Example:
If that same shoe company has $10 million in revenue but $8 million in expenses, profit = $2 million.

 

 

What to Look For

 

  • Is revenue growing year over year?

  • Is profit also growing, or are expenses rising too fast?

  • Does the company have healthy margins (profit as a % of revenue)?

  • How do revenue and profit compare with similar companies in the same industry?

 

Revenue shows how much money a business brings in. Profit shows how much it keeps. Both are essential indicators of a company’s health. But to know how valuable those profits are to shareholders, we need to go one step further — into Earnings Per Share and the P/E Ratio.

 

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Stock Market Course