Understanding Capital Markets

Learn what capital markets are and how they work. Explore investments such as stocks, bonds, mutual funds, and commodities and the skills you need to be a successful investor.

Introduction

• Capital markets and investment decisions
• Disclaimer

1. Capital Markets Basics

• Risk and return in the stock market
• Major US markets
• The shrinking stock market
• International markets
• Regulation and the capital markets

2. Stock Markets

• What are stocks?
• Investing in stocks
• Stock market operations
• Setting up stock market accounts
• The bid-ask spread
• Buying and selling in the stock markets
• Shorting and going long
• Stock market indices
• Stocks, ETFs, and mutual funds
• Basics of stock valuation
• Earnings reports and major stock events
• Returns in the stock market
• Risk in the stock market
• Value and growth stocks
• Call options and stocks
• Put options and stocks

3. Bond Markets

• Bond market basics
• Investing in bonds
• Bond valuation in Excel
• Bond yields in Excel
• Three important relationships in bonds
• Returns on corporate bonds
• Treasury bond markets
• Treasury auctions
• Municipal bond markets
• Municipal bonds and the tax exemption
• Bond ratings and municipal bonds
• Trading in municipal bonds

4. Other Capital Markets

• FX markets basics
• Buying and selling in FX
• FX arbitrage
• Commodity markets basics
• Buying and selling in commodities
• Commodities and contango

Conclusion

• Next steps