Financial Management

Investment Fundamentals

In this course, you will learn the fundamentals of investment finance and the implementation of key asset-pricing…

In this course, you will learn the fundamentals of investment finance and the implementation of key asset-pricing models and firm-valuation techniques in real-world situations.

About this course

Everyone has heard of the stock market, but how does it work? How does anyone make money through investing? This course answers these questions and more, exploring how careful investment can shape your financial future or the future of your company.

Learn the basics of investing and investment vehicles. Gain an understanding of what it takes to stay afloat in a turbulent market, how to choose investments wisely, and how world events and other factors play a part in investment strategy.

The over-arching goals of this course are to build an understanding of the fundamentals of investment finance and provide an ability to implement key asset-pricing models and firm-valuation techniques in real-world situations.

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What Will You Learn?

  • Understanding how stock markets work
  • Essentials of successful investments
  • Building a strong portfolio and reducing financial risks

Course Curriculum

1. Introduction
Welcome to Investment Fundamentals!

  • Introduction

2. Prepare to Invest
If you don’t have any experience investing on your own, getting started can be rather intimidating, confusing, and overwhelming. In this chapter, we will discuss some things all starting investors should keep in mind while getting ready to buy their first stock.

3. Asset Allocation
Asset allocation is an investing strategy that involves spreading your money across different asset classes in order to diversify your portfolio and reduce your overall risk. Each asset class has different characteristics and performs differently in different market conditions.

4. Investment Management
There are a number of ways you can invest your money in the asset classes we have discussed in the previous chapter. One of the most popular options is the use of pooled funds with the help of professional investment management companies.

5. Monitoring your Investments
A number of factors will influence your portfolio and your investment choices over time. That’s why it is important to understand the nature of markets. This background knowledge will enable you to react to market changes and to adjust your portfolio when necessary.

6. The Golden Rules

7. Reducing Risk
Reducing risk when investing is an important consideration for investors looking to protect their capital. While it’s not possible to completely eliminate all risks, there are two popular strategies you can employ to help mitigate and manage risks: diversification and dollar cost averaging.

8. Conclusion
When it comes to investing, there are many different strategies that can be employed in order to try and achieve success. Some people want to actively pick individual stocks and shares to invest in, while others prefer to take a more passive route, investing in a managed fund or index tracker for example. In this course, you learned the basics of investing money. In simple words, investing means putting your money to work for you. You learned that each investor is different in their risk tolerance and that there is more than one strategy that can be used to invest successfully. With an understanding of your investment goals, time frame, and risk, you can begin to create an asset allocation for your portfolio. Asset allocation simply means spreading your money across different asset classes in order to diversify your portfolio and reduce your overall risk. Diversification is often cited as one of the most important aspects of investing. By spreading your money across a range of different asset classes and investments, you are reducing your overall risk. This is because if one investment performs poorly, the others may offset this and help to generate a positive return. Another important factor to consider is your timeframe. If you are investing for the long term, then you can afford to take on a bit more risk as you have a longer time horizon in which to recoup any losses. However, if you are investing for the short term, then you will need to be more cautious as you will not have the same time to wait for an investment to recover. Finally, it is worth seeking professional advice before making any major investment decisions. A financial advisor can help you to understand the different options available to you and make recommendations based on your individual circumstances. Thank you for taking this course and good luck with the quiz!

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