A Report in Financial ManagementBy: Ulysses Maniago

The market in which shares are issued and traded either through exchanges or over-the-counter markets. Also known as the equity market, it is one of the most vital areas of a market economy as it provides companies with access to capital and investors with a slice of ownership in the company and the potential of gains based on the company's future performance

[Video]Source:http://www.youtube.com

title: How the Stock Market Works - Cartoon Tutorial - Economics and Investing Video

What are Stocks?A type of security that signifies ownership in a corporation and represents a claim on part of the corporation's assets and earnings. 

Stocks are one of the most popular financial instruments in the world, but what does a stock actually represent? Find out how and why stocks are created, and what buying a stock means for investors.[Video]Source: http://www.investopedia.com/video/play/what-are-stocks

To Beat InflationInflation is the rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling. Central banks attempt to stop severe inflation, along with severe deflation, in an attempt to keep the excessive growth of prices to a minimum. [Video]Source: http://www.moneyworks4me.com/stock-market/safe-investment/learn-stock-market-investment

Did you know that inflation is silently eating away atyour savings? Learn more about this sneaky financialphenomenon and what causes it. [Video]

Source: http://www.investopedia.com/video/play/what-is-inflation

Why Stock Prices Fluctuate?The stock market is characterized as complex, unpredictable and ever changing. It moves with a life of its own, reacts to circumstances, and leaves investors either reaping rewards or with nothing at all.

The price of a stock is the amount agreed upon by a seller and a buyer in a continuous auction market. The stock price is determined by multiple factors such as supply and demand, opinions and outlooks and technical factors.[Video]Source: http://www.moneyworks4me.com/stock-market/safe-investment/learn-stock-market-investment

Learn how to read stock prices in a Newspaper. [Video] Source: http://www.moneyworks4me.com

Find out the aspects of each of these popular investment vehicles and how they can work for you. [Video]Source: http://www.investopedia.com/video/play/stocks-versus-bonds

BondsA debt investment in which an investor loans money to an entity (corporate or governmental) that borrows the funds for a defined period of time at a fixed interest rate. Bonds are used by companies, municipalities, states and U.S. and foreign governments to finance a variety of projects and activities. 

Find out how this method of debt investment is used to finance various levels of government and private companies. [Video]Source: http://www.investopedia.com/video/play/understanding-bonds

All publicly traded companies share the same basic corporate structure. Find out how the management hierarchy works, what responsibilities belong to whom, and who’s looking out for shareholders.

[Video]Source: http://www.investopedia.com/video/play/corporate-structure

The first sale of stock by a private company to the public. IPOs are often issued by smaller, younger companies seeking the capital to expand, but can also be done by large privately owned companies looking to become publicly traded.

An initial public offering (IPO) marks the start of a company's publicly traded life. Find out why companies undergo IPOs, and how the process works. [Video]Source: http://www.investopedia.com/video/play/initial-public-offering

A distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders. The dividend is most often quoted in terms of the dollar amount each share receives (dividends per share).

Income investors love them and growth investors rarely expect them, but just what are dividends? Learn the story behind these payouts and why they are (or aren't) offered to investors. [Video]Source: http://www.investopedia.com/video/play/what-is-dividend

An agreement that gives an investor the right (but not the obligation) to buy a stock, bond, commodity, or other instrument at a specified price within a specific time period.

Find out how this financial ratio helps investors choose the best "bang for your buck" stocks.[Video]Source: http://www.investopedia.com/video/play/understanding-dividend-yields

It is the total value of the company's assets that shareholders would theoretically receive if a company were liquidated.

Book value is a component in many ratios that investors use to evaluate stocks. Find out how it is calculated and what it reveals about a company.[Video]Source: http://www.investopedia.com/video/play/book-value

Return on Investment (ROI) Earnings Per Share (EPS) Return on Equity (ROE) Return on total assets Price to Earnings Ratio (P/E ratio) Compound Annual Growth Rate (CAGR)

Return On Investment (ROI)A performance measure used to evaluate the efficiency of an investment or to compare the efficiency of a number of different investments. To calculate ROI, the benefit (return) of an investment is divided by the cost of the investment; the result is expressed as a percentage or a ratio. 

The return on investment formula:ROI= (Gain from Investment – Cost of Investment)

Cost of Investment

[Video]Source: http://www.investopedia.com/video/play/return-on-investment-basics

Earnings Per ShareThe portion of a company's profit allocated to each outstanding share of common stock. Earnings per share serves as an indicator of a company's profitability.Calculated as:

(Net Income – Dividends on Preferred Stock)Average Outstanding Shares

Earnings per share is one of the most carefully followed metrics in investing. Find out why this ratio matters and how to calculate it. [Video]Source: http://www.investopedia.com/video/play/earnings-per-share

Return On Equity (ROE)The amount of net income returned as a percentage of shareholders equity. Return on equity measures a corporation's profitability by revealing how much profit a company generates with the money shareholders have invested. ROE is expressed as a percentage and calculated as:Return on Equity = Net Income/Shareholder's Equity

Return on equity is one of the basic metrics used to evaluate a company's stock. Find out what it can tell you about a stock and learn how to calculate it here. [Video]Source: http://www.investopedia.com/video/play/return-on-equity

Return On Assets (ROA)An indicator of how profitable a company is relative to its total assets. ROA gives an idea as to how efficient management is at using its assets to generate earnings. Calculated by dividing a company's annual earnings by its total assets, ROA is displayed as a percentage.

Return on assets is one of the basic metrics used to evaluate a company's stock. Find out what it can tell you about a stock and learn how to calculate it here. [Video]Source: http://www.investopedia.com/video/play/return-on-assets

Price to Earnings Ratio (P/E ratio)A valuation ratio of a company's current share price compared to its per-share earnings.

Calculated as:Market Value per ShareEarnings per Share (EPS)

The price to earnings ratio is one of the most important ratios in investing. Find out how it can be used and what it tells investors about a particular stock. [Video]Source: http://www.investopedia.com/video/play/price-to-earnings-ratio

Compound Annual Growth Rate (CAGR)The year-over-year growth rate of an investment over a specified period of time. The compound annual growth rate is calculated by taking the nth root of the total percentage growth rate, where n is the number of years in the period being considered. 

Calculated as:  

The compound annual growth rate is an important tool for measuring investment performance and comparing it across asset classes. Discover how it is calculated and how it can inform your investment decisions. [Video]Source: http://www.investopedia.com/video/play/compound-annual-growth-rate

The use of "bull" and "bear" to describe markets comes from the way the animals attack their opponents. A bull thrusts its horns up into the air while a bear swipes its paws down. These actions are metaphors for the movement of a market. If the trend is up, it's a bull market. If the trend is down, it's a bear market.

Learn the importance of these opposing views on investing in the markets. [Video]Source:http://www.investopedia.com/video/play/what-are-bull-and-bear-markets

An order placed with a brokerage to buy or sell a set number of shares at a specified price or better. Limit orders also allow an investor to limit the length of time an order can be outstanding before being canceled. 

Picking entry and exit points can be a big challenge for investors. Find out how limit orders can help you buy and sell a stock at the price you want. [Video]Source: http://www.investopedia.com/video/play/how-do-limit-orders-work

Put option allow investors to hedge an investment they own or speculate in an investment they don't own. Find out more about this type of option and how it can work in an investor's favor.

An option contract giving the owner the right, but not the obligation, to sell a specified amount of an underlying security at a specified price within a specified time. This is the opposite of a call option, which gives the holder the right to buy shares.[Video]Source: http://www.investopedia.com/video/play/put-option

An agreement that gives an investor the right (but not the obligation) to buy a stock, bond, commodity, or other instrument at a specified price within a specific time period.

Call options offer investors a way to leverage their capital for greater investment returns. Find out more about these financial contracts and how they work. [Video]Source: http://www.investopedia.com/video/play/call-option

Options offer investors a way to leverage their capital for greater investment returns. Find out what in the money means for option investors.

[Video]Source: http://www.investopedia.com/video/play/in-the-money

Thank You!