The Basics of Investing in the Capital Market
The Basics of Investing in the Capital Market
It is always smart to have other sources of income and growth than your job. The capital market is a venue for the circulation and growth of wealth in all the developed world. Once you understand the basics, investing can become fun and rewarding.
This is why we, at CareerMidEast.com, bring you this mini-course in investing. We hope that you learn from it and use it to your advantage.
Our advice is that you read the topics in order. However, they have been written so that each could stand on its own. If you have any questions or comments write to feedback@careermideast.com. And if there are any topics you think should be added DO tell us, and if there are any personal experiences and/or lessons that you would like to share with us please DO share. Enjoy!
Contents
The Capital Market
What is it?
The Role of the Capital Market
How It Works
Market Nature
The Market Cycle
Securities selling at the stock market
Stocks
Bonds
Why invest in the capital market?
Pre-Investment Knowledge
Investment, risk, and the risk-return relationship
Before you begin
Taking a position
What is an index?
Buying and Selling
Investment vs. Speculation
The Four-Step Investment Process
Strategies
Methods for stock selection
How to reduce risk in a portfolio of securities
A great way to diversify
The way to making a quick yet successful pick
Buy in good companies and hold them long
Beware
Watch out for noise
Never-selling and panic-selling
Security prices are not logical
Advanced Strategies
Growth Investing
Value Investing