Introduction to Stock Market
Lesson 1: What is Stock Market?
📚 Scenario
Stock market is a market place where companies can raise capital against financial instruments which can also be traded by investor. Stock markets are a barometer of trust from local and global investor which depends on political stability and business environment.
Key Points
- Primary function as a capital raising platform
- Role in economy
- Basic market mechanics
- Relationship with economic factors
🎥 Video Guide
✍️ Practice Questions
- What is the primary purpose of a stock market?
- How does the stock market reflect economic conditions?
- Why do companies choose to raise capital through the stock market?
- Explain how the stock market acts as a barometer of trust.
Think about these questions to reinforce your understanding of stock market basics.
Lesson 2: Stock Market Participants
📚 Scenario
Different folks participate in the stock market value chain, each playing a crucial role in maintaining market efficiency and integrity. Understanding these participants and their roles is key to grasping market dynamics.
Key Participants
- Investors (Retail and Institutional)
- Brokers and Trading Platforms
- Market Makers
- Regulators
- Stock Exchanges
- Listed Companies
Market Indices
- Understanding market indices
- How indices reflect market performance
- Major global indices
🎥 Video Guide
✍️ Practice Questions
- List the main types of market participants and their roles.
- How do market makers contribute to market efficiency?
- What is the difference between retail and institutional investors?
- Explain the significance of market indices.
Lesson 3: Types of Orders
📚 Scenario
Understanding different types of orders is crucial for executing trading strategies effectively. Each order type serves a specific purpose and helps investors manage their trades and risk.
Order Types
- Market Orders
- Limit Orders
- Stop Orders
- Stop-Limit Orders
- Good-Till-Cancelled (GTC)
- Day Orders
🎥 Video Guide
✍️ Practice Questions
- What is the difference between a market order and a limit order?
- When would you use a stop-loss order?
- Explain the advantages and disadvantages of different order types.
- How does a stop-limit order work?
Lesson 4: Trading Terminology
📚 Scenario
To track stocks effectively and understand market sentiment, it’s essential to be familiar with common trading terminology and market attributes used in stock discussions.
Key Terms
- Bull vs Bear Market
- Volume and Volatility
- Market Capitalization
- P/E Ratio
- Dividend Yield
- Moving Averages
🎥 Video Guide
✍️ Practice Questions
- Define bull market and bear market.
- How does trading volume affect stock prices?
- What does market capitalization indicate about a company?
- Explain the significance of P/E ratio in stock analysis.
Lesson 5: Market Sentiments
📚 Scenario
Stock markets are driven by sentiments. Understanding market psychology and sentiment indicators helps investors make informed decisions and stay ahead of market trends.
Key Aspects
- Market Psychology
- Sentiment Indicators
- News Impact
- Technical vs Fundamental Analysis
- Trend Analysis
🎥 Video Guide
✍️ Practice Questions
- How do market sentiments influence stock prices?
- What are the main sentiment indicators used by traders?
- Explain the relationship between news events and market sentiment.
- How can investors use sentiment analysis in their trading strategy?