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Introduction to Stock Market Investment

If you strongly suspect that the New York Stock Exchange is in New York, then this on-line course is for you.


This course is designed to emulate an academic course in stock market investment. This means that there is more emphasis on why and how the market functions than on why you personally should put money into it. The course consists of three sections.

  • A Piece of the Action presents the institutional background of Stock Market Investment. It looks at the market from the corporation’s point of view: from the requirements of an Initial Public Offering to the differences between trading on NASDAQ and the New York Stock Exchange.

  • The Mechanics of Investment presents the procedural side of Stock Market Investment. It looks at trade orders, trading on margin, and selling short.

  • Investment Strategies and Techniques presents the analytical side of Stock Market Investment. It looks at investment performance measurement, presents some common investment strategies, and presents the basics of fundamental and technical analysis. This section tends to be more mathematically oriented.

These three sections make up the course material. The lessons take this material and present it in ordered chunks together with investment and mathematical exercises, case studies, and review questions.

Answers are provided so that you can grade yourself, or you can skip the quizzes altogether. The only grade issued is the one you give yourself. So learn, have fun, make or lose a few million in hypothetical US dollars in a simulated portfolio and, when you complete the course, decide for yourself if you want to risk your own hard-earned money in the Stock Market. If you do invest, you will at least be an informed investor. Lord knows there are already too many of the other kind. © Copyright 2007 Department of Finance, University of Illinois