Investing in Stocks – Raising Cash, Building Wealth, and Stock Pricing

This video covers the following learning objectives:

1️⃣ Explain how stocks are issued and traded

• Describe how companies issue stock through Initial Public Offerings (IPOs).

• Explain the difference between primary and secondary markets.

• Understand how investors buy and sell shares on stock exchanges.

2️⃣ Describe common versus preferred stock

• Identify the key characteristics of common stock: voting rights, dividends, and capital appreciation potential.

• Identify the key characteristics of preferred stock: fixed dividends, dividend priority, and limited growth potential.

• Compare risks and benefits of common and preferred stock for investors.

3️⃣ Explain how stock prices are determined

• Describe how supply and demand affect stock prices.

• Understand factors influencing investor demand, such as earnings reports, company news, economic conditions, and market sentiment.

• Introduce valuation models like Price-to-Earnings (P/E), Dividend Discount Model (DDM), and Discounted Cash Flow (DCF) analysis.

• Explain how stock prices fluctuate relative to intrinsic valuation estimates.

• Discuss how external events, like interest rate changes or geopolitical events, can affect stock prices.