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 Causes Stock Prices To Rise And Fall

 

Stock prices move constantly — even by the second. But why they move isn’t random. Prices change based on supply and demand, which are influenced by many different factors.

 

At its core:

Stock prices rise when more people want to buy than sell.

Stock prices fall when more people want to sell than buy.

 

But what makes investors decide to buy or sell? Let’s break it down.

 

 

The Main Factors That Influence Stock Prices

 

1. Company Performance (Earnings Reports)

 

When a company announces strong profits, growing revenue, or beats market expectations, investors get excited — and demand for the stock increases.

 

Good news → More buyers → Price goes up


Poor results or missed forecasts → More sellers → Price goes down

 

 

2. Future Expectations

 

Sometimes, the future outlook matters more than current results. If investors believe the company will grow rapidly in the future, they may pay a high price today.

  • Launching a new product

  • Entering a new market

  • Securing a big contract
    All of these can drive the price higher.

 

 

3. Industry and Sector Trends

 

Even if a company is doing well, it can be affected by the overall performance of its industry.

 

Example:
If oil prices fall, oil company stocks might drop — even if they’re profitable.

 

 

4. Economic Conditions

 

The broader economy plays a big role in stock prices:

  • Low interest rates make stocks more attractive (money is cheaper to borrow)

  • High inflation can hurt profits and reduce buying power

  • Recession fears or economic slowdowns often cause prices to drop

 

 

5. Market Sentiment and Investor Psychology

 

Emotions drive markets more than most people realise.

  • Fear (bad news, economic panic) → Selling pressure

  • Greed (bull markets, hype) → Buying frenzy

  • Sometimes prices rise or fall based on rumors, headlines, or social media buzz.

 

 

6. Geopolitical Events and Global News

 

Wars, pandemics, elections, and trade disputes can all affect markets — especially multinational companies.

 

Example:
Tensions between countries can affect oil companies, tech stocks, or exporters.

 

 

7. Supply and Demand for Shares

 

If more people want to buy a stock than sell it, the price must rise to match supply with demand.


If more people are selling, the price falls until buyers step in.

 

 

8. Interest Rates and Central Bank Policies

 

When central banks (like the Federal Reserve or Reserve Bank of Australia) raise rates:

  • Borrowing becomes more expensive

  • Consumer spending may drop

  • Company profits can shrink
    This often causes stock prices to fall.

 

Lower rates usually have the opposite effect.

 

 

9. Dividends and Share Buybacks

 

  • Companies that increase dividends or buy back their own shares often see a rise in stock price.

  • This shows confidence and rewards shareholders.

 

 

10. Technical Factors (Trading Volume, Momentum)

 

Some short-term traders buy or sell based on chart patterns, volume spikes, or price momentum — which can temporarily drive prices up or down even without big news.

 

 

Summary

 

Stock prices are driven by what people believe a company is worth now and in the future.


That belief is shaped by real business performance, news, emotions, the economy, and global events.


In the short term, markets can be volatile and unpredictable — but over the long term, strong companies tend to rise in value as they grow and deliver results.

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Stock Market Course