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How the Stock Market Works

by Ramon P. DeGennaro

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432588,567 (3.17)None
Business. Nonfiction. HTML:

This course is an introduction to the stock market and stock investing for novices and experienced investors alike. Professor DeGennaro uses simple analogies to explain the origin of stocks and other securities, as well as their relative risks. He stresses the danger of trying to beat the market by trying to pick winners, predict price trends, or otherwise find opportunities that other investors have missed. Far better, he counsels, to own a well-diversified portfolio of individual stocks or stock funds, which tend to grow as the economy grows. He offers detailed guidance on how to pursue this course. Among the topics covered in these 18 lectures are how to open a brokerage account and choose a financial advisor; the essentials of mutual funds, including index funds, and exchange traded funds (ETFs); how to trade individual stocks, including how to use options; the relative advantages of traditional IRAs, Roth IRAs, and 401(k) plans; how to minimize transaction costs and use tax laws for your benefit; the dangers of frequent trading; and the basics of corporate balance sheets, income statements, and cash flow statements. For anyone who owns stocks or is thinking of entering the market, this course provides indispensable advice. If you entrust the management of your assets to a financial advisor, this course will give you the background you need to communicate more knowledgeably with him or her and be an informed participant in your own financial well-being.

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I'm an economist, so I bought this course to pick up some tips on how to present this material to undergraduates and to have something to possibly recommend to friends. While I have a few quibbles, overall I think Dr. DeGennaro did an excellent job presenting the material for a general audience interested in investing in the stock market. I wouldn't hesitate to recommend the course to friends or students, because it emphasizes the difficulty of "beating the market" and the need to take a well-considered approach to risk while also getting started on savings goals today.

One word of caution that I'd offer is that, as is appropriate given its title, this is not a course on financial planning in general. But I do think anyone new to investing would get a lot of value from this course in conjunction with learning more about financial planning or talking to an appropriate adviser.

[2019-09-10] ( )
  szarka | Sep 10, 2019 |
I lost focus while listening on audio. Finances do not excite me; hence, the need to learn more. My review really isn't a reflection on the course. I just have to learn to concentrate when numbers are involved. *Sigh* ( )
  godmotherx5 | Apr 5, 2018 |
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Business. Nonfiction. HTML:

This course is an introduction to the stock market and stock investing for novices and experienced investors alike. Professor DeGennaro uses simple analogies to explain the origin of stocks and other securities, as well as their relative risks. He stresses the danger of trying to beat the market by trying to pick winners, predict price trends, or otherwise find opportunities that other investors have missed. Far better, he counsels, to own a well-diversified portfolio of individual stocks or stock funds, which tend to grow as the economy grows. He offers detailed guidance on how to pursue this course. Among the topics covered in these 18 lectures are how to open a brokerage account and choose a financial advisor; the essentials of mutual funds, including index funds, and exchange traded funds (ETFs); how to trade individual stocks, including how to use options; the relative advantages of traditional IRAs, Roth IRAs, and 401(k) plans; how to minimize transaction costs and use tax laws for your benefit; the dangers of frequent trading; and the basics of corporate balance sheets, income statements, and cash flow statements. For anyone who owns stocks or is thinking of entering the market, this course provides indispensable advice. If you entrust the management of your assets to a financial advisor, this course will give you the background you need to communicate more knowledgeably with him or her and be an informed participant in your own financial well-being.

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