Any individual entering the investing world needs to have a thorough understanding of the principles and knowledge that make up Investment Foundations. In addition to understanding what investments are—resources committed today that will generate income or capital gains in the future—we also explain the types of investments available, such as stocks, bonds, currency pairs, mutual funds, and real estate. Besides fundamental economic and financial concepts that affect investments, the course discusses the time value of money and the risk/return tradeoff as well as inflation, interest rates, and economic growth’s impact on returns. A thorough understanding of financial markets, the roles of market participants, and the regulatory landscape is also important. Among the foundational elements is risk management, which involves strategies for mitigating various risks, including market and credit risks, through diversification and other approaches. Developing a clear investment objective and a strategy tailored to one’s financial needs and risk tolerance are crucial, along with becoming proficient in reading and analyzing financial statements and key financial metrics used in investment analysis. Finally, ethical investing principles are emphasized to ensure that investment practices are conducted legally and ethically, maintaining trust and sustainability in investment activities. It is necessary to have these foundational aspects before exploring more sophisticated investment decisions and strategies.
1. Overview of Investment
2. Types of Investments
3. Goals and Objectives
4. Understanding Risk
1. Basic Economics
2. Financial Markets
3. Reading Financial Statements