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How the Stock Market Works
This course is an introduction to the stock market and stock investing for novices and experienced investors alike. Professor DeGennaro uses simple analogies to explain the origin of stocks and other securities, as well as their relative risks. He stresses the danger of trying to beat the market by trying to pick winners, predict price trends, or otherwise find opportunities that other investors have missed. Far better, he counsels, to own a well-diversified portfolio of individual stocks or stock funds, which tend to grow as the economy grows. He offers detailed guidance on how to pursue this course.
Among the topics covered in these 18 lectures are how to open a brokerage account and choose a financial advisor; the essentials of mutual funds, including index funds, and exchange traded funds (ETFs); how to trade individual stocks, including how to use options; the relative advantages of traditional IRAs, Roth IRAs, and 401(k) plans; how to minimize transaction costs and use tax laws for your benefit; the dangers of frequent trading; and the basics of corporate balance sheets, income statements, and cash flow statements.
For anyone who owns stocks or is thinking of entering the market, this course provides indispensable advice. If you entrust the management of your assets to a financial advisor, this course will give you the background you need to communicate more knowledgeably with him or her and be an informed participant in your own financial well-being.
Disclaimer: Please note that this recording may include references to supplemental texts or print references that are not essential to the program and not supplied with your purchase.
©2014 The Great Courses (P)2014 The Teaching Company, LLC
Among the topics covered in these 18 lectures are how to open a brokerage account and choose a financial advisor; the essentials of mutual funds, including index funds, and exchange traded funds (ETFs); how to trade individual stocks, including how to use options; the relative advantages of traditional IRAs, Roth IRAs, and 401(k) plans; how to minimize transaction costs and use tax laws for your benefit; the dangers of frequent trading; and the basics of corporate balance sheets, income statements, and cash flow statements.
For anyone who owns stocks or is thinking of entering the market, this course provides indispensable advice. If you entrust the management of your assets to a financial advisor, this course will give you the background you need to communicate more knowledgeably with him or her and be an informed participant in your own financial well-being.
Disclaimer: Please note that this recording may include references to supplemental texts or print references that are not essential to the program and not supplied with your purchase.
©2014 The Great Courses (P)2014 The Teaching Company, LLC
Audio CD
First published January 1, 2014
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Displaying 1 - 30 of 75 reviews
November 5, 2015
This was my first experience with "The Great Courses" lectures. It is an excellent primer and if all of the lectures are as useful and as informative as this one, I'll be looking to give another topic a try the next time Audible discounts them. I hear the linguistics course are very well done so that will likely me my next foray into these lectures.
July 6, 2016
I lost focus while listening on audio. Finances do not excite me; hence, the need to learn more. My review really isn't a reflection on the course. I just have to learn to concentrate when numbers are involved. *Sigh*
November 20, 2015
At some point he has the audacity to say that the tribes that 'sold' Manhattan for 24 dollars didn't got such a bad deal... If they had invested the money for 400 years, they would have be well off. He makes the moronic assumption that the Native American between being massacred and ripped from their lands would had made some time to setup a CD or Money Market they would had been better off.
Honestly I think he is one of those academic sellouts that regurgitates lines to make a clearly rotten and corrupt industry look good.
Honestly I think he is one of those academic sellouts that regurgitates lines to make a clearly rotten and corrupt industry look good.
June 25, 2017
Great overview of stock investing, covering pretty all the basics, including why it's so hard to beat the market consistently and how to minimize taxes. Should be understandable by most listeners. Only criticism, whether it's fair or not, is that I didn't learn as much as I thought I might, as I've learned most of the information elsewhere, but maybe my expectations were a bit too high.
May 5, 2021
This is a great introductory lesson on stocks. All of the basics and most essential terminology are covered. Some stuff is getting a little dated with trading being more accessible than ever, but there’s still a lot to learn from this Great Courses lesson.
May 9, 2016
Pretty basic
February 2, 2020
A good introduction to the stock market and stock investing. Very didactic :)
April 2, 2020
Not much depth but great as a primer.
March 31, 2021
Written in layman's terms and although it is just scratching the surface, it provides a great overview.
Read
July 8, 2021Very informative. I learned a lot from this book. Good reader on audible.
March 19, 2021
Mildly interesting, with good advice sprinkled throughout the lectures.
However, it is not great, and, at times, it was fairly elementary. I also think this was mistitled. This is less about how stock markets work and more a general introduction to investing.
However, it is not great, and, at times, it was fairly elementary. I also think this was mistitled. This is less about how stock markets work and more a general introduction to investing.
June 11, 2024
I knew most of this information already, but the orator is really good. The information about open- and closed-funds was good. Recommended for anyone who has the patience for the stock market!
July 9, 2015
Všechno pěkné někde, někdy či něčím končí. V případě vzdělávacích programů z produkce The Great Courses je oním slepým střevem audiokniha se slibným názvem How the Stock Market Works (Jak funguje akciový trh), jejímž autorem je profesor bankovnictví a financí na univerzitě v Tennessee Ramon DeGennaro. Titul se překvapivě netýká tržních základů, ale jedné nejasné investiční strategie, kterou přednášející odvozuje z kontroverzní teorie efektivních trhů. Ta předpokládá, že všechny akciové tituly jsou vždy správně, racionálně a férově oceněny na základě dostupných informací, což, jak praxe ukazuje, není tak úplně pravda. Název tedy slibuje objektivní popis fungování akciového trhu, ale skutečnou náplní je silně předpojatý úvod do investování. Sám autor dokonce otevřeně přiznává, že je víc profesor než investor, proto je škoda, že nezůstal u toho, čemu evidentně rozumí, a to je vysvětlení fundamentální teorie, od vztahu akcie ke jmění společnosti, po IPO emise a makroekonomické vlivy. Nepochybuji, že právě takové bylo zadání producentů Great Courses a nejspíš nečekali, že DeGennaro dá největší prostor vlastní agendě. Pokud dokážete při čtení odfiltrovat jeho investiční rady, pak lze tuto audioknihu snad i doporučit, těch zbylých 50 % obsahu jistou hodnotu má.
March 14, 2020
In two weeks, I went from knowing very little about the stock market to understanding the fundamental differences between stocks and bonds, the three factors that determine how much we make (rate of return, amount of investment, time invested), how to trade, trading strategies, and how to minimize losses on trading, what options, mutual funds, and ETFs are and how they work, what IPOs are, why companies IPO, and the process behind becoming an IPO, learning to read financial reports, especially the corporate balance sheets, income statements, and cash flow statements, and so on. And all of that is only about 1/3rd of the course.
I've had a brokerage for years, but I never used it because I never knew what I was looking at. After taking this course and getting my feet wet in the market, the information given to me by the course made my brokerage account very easy to navigate, and I was up and investing in no time. No pun intended, but this course was one of the best investments I've ever made. The power of compound interest is real, and I plan on taking advantage of it for at least the next 40-50 years.
I've had a brokerage for years, but I never used it because I never knew what I was looking at. After taking this course and getting my feet wet in the market, the information given to me by the course made my brokerage account very easy to navigate, and I was up and investing in no time. No pun intended, but this course was one of the best investments I've ever made. The power of compound interest is real, and I plan on taking advantage of it for at least the next 40-50 years.
May 14, 2019
Most people around me are afraid of stock market investment. Some invested blindly based on rumors, and finally lost everything. A few ones invested in established companies like amazon/ google/ facebook with the hope that they would not crash. It seems none of them have a good idea of how stock market works and how one should invest. Because, 1) fear should not dictate any decision, and 2) it is utterly naive to expect a huge profit by just investing in a good company. The market is generally efficient, and it is almost impossible for a small investor to beat the market. But can't you make some profit out of it? Yes, of course, you can. But there is no free lunch, you need to know the basics and have some strategies according to your financial situation and goals. This course provides an intro to such basics and strategies. It is not for big investors, but for novice/average investors. It was enlightening to know ways to get decent profits at reasonably low risk. The course was fun.
April 30, 2020
Always good to go over the basics. After having read most of the more well-known finance books, I read books like this to gain little nuggets of information. One of the lessons that I learned from this didn't really have to do with the stock market; it was the real estate market. It was how real estate agents have the highest odds of acquiring the best houses to rent out. Those of us not in the real estate game will more likely pay more for a rental property which may also be of a lower quality.
Beginning investors should definitely read books like these. They need to learn that reducing investing factors within your control are better and easier than trying to control things like rate of return. Fees, taxes, and time in the markets are things we can control.
Beginning investors should definitely read books like these. They need to learn that reducing investing factors within your control are better and easier than trying to control things like rate of return. Fees, taxes, and time in the markets are things we can control.
January 13, 2024
I would recommend pairing this book with Mark Skousen's Investing in One Lesson. It's a nice and helpful book that preaches (correctly) diversification, and paying attention to long-term investments instead of stock-trading and 'buying low, selling high.' A common sense guide to stock exchange.
April 26, 2021
For the most part, this is a solid primer on the stock market and basic investing advice for the beginner. I appreciate that the author points out multiple times that it's absolutely unrealistic to think that you can predict the market. He highlights facts about how the professionals aren't all that great at making these investing decisions, and explains how index funds are a solid, low-cost approach. He even talks about tax consequences of different investing decisions, as well as IRA, Roth IRA and 401(k) plans.
But there are problems. Most notably is the author's severe streak of political conservatism.
1. He maintains firmly that taxing companies is bad, because it ends up taking money away from individuals (not mentioning that it's wealthy business owners and investors who would suffer those slightly smaller returns).
2. He refers to the popular tale of Manhattan being purchased from a Native American tribe for $24. As the author notes, the truth is complicated for a number of reasons (I recommend looking it up and reading a little about it), but the point is that he felt this was actually a great deal for the indigenous people because... if they had invested the money and it had accumulated compounding interest for 400 years, they would be immensely wealthy today. It's possible this example was tongue in cheek, but disregarding all the other problems with this example, he's completely making light of how Native Americans suffered from imperialism. It seems he supports the conservative narrative that Native Americans are better off for us coming to the Americas and taking their land, which at best is utterly tone deaf.
3. When comparing IRA and Roth IRA plans in terms of taxable income, he upturns the standard wisdom that it's better to defer paying taxes on investments until you retire, because your income (and thus, your tax bracket) will be much lower then. He is of the opinion that the US national debt is completely out of control, and therefore any day now we will see tax rates skyrocket as our bills come due as a nation and the government will scramble to come up with the cash by taxing the citizens. Therefore, it is better to pay the taxes sooner rather than layer, because our tax rates will only go up from here. Apart from being politically slanted, this seems incredibly unlikely. Not only has that not happened in the hundreds of years the US has existed, but there is no need for it too. The massive stimulus packages of the pandemic show us that, as well as "Modern Monetary Theory" (an interesting concept, look it up - Planet Money does a good job talking about it). There seems to be no reason whatsoever to expect tax rates for people with average salaries to balloon. But to be fair, this book was published in 2014. A lot has happened to change the field of economics since then.
But there are problems. Most notably is the author's severe streak of political conservatism.
1. He maintains firmly that taxing companies is bad, because it ends up taking money away from individuals (not mentioning that it's wealthy business owners and investors who would suffer those slightly smaller returns).
2. He refers to the popular tale of Manhattan being purchased from a Native American tribe for $24. As the author notes, the truth is complicated for a number of reasons (I recommend looking it up and reading a little about it), but the point is that he felt this was actually a great deal for the indigenous people because... if they had invested the money and it had accumulated compounding interest for 400 years, they would be immensely wealthy today. It's possible this example was tongue in cheek, but disregarding all the other problems with this example, he's completely making light of how Native Americans suffered from imperialism. It seems he supports the conservative narrative that Native Americans are better off for us coming to the Americas and taking their land, which at best is utterly tone deaf.
3. When comparing IRA and Roth IRA plans in terms of taxable income, he upturns the standard wisdom that it's better to defer paying taxes on investments until you retire, because your income (and thus, your tax bracket) will be much lower then. He is of the opinion that the US national debt is completely out of control, and therefore any day now we will see tax rates skyrocket as our bills come due as a nation and the government will scramble to come up with the cash by taxing the citizens. Therefore, it is better to pay the taxes sooner rather than layer, because our tax rates will only go up from here. Apart from being politically slanted, this seems incredibly unlikely. Not only has that not happened in the hundreds of years the US has existed, but there is no need for it too. The massive stimulus packages of the pandemic show us that, as well as "Modern Monetary Theory" (an interesting concept, look it up - Planet Money does a good job talking about it). There seems to be no reason whatsoever to expect tax rates for people with average salaries to balloon. But to be fair, this book was published in 2014. A lot has happened to change the field of economics since then.
December 2, 2023
This is only my second or third “Great Classes” offering, and I’m happy with it.
I’m not a finance professional by any stretch, but I have a pretty good sense of the basics of investing and the markets. I try to read something on it every few years, though, since it’s good to be reminded of much of what I might have forgotten or not recently considered.
And, for reminding of those basics, it’s hard to imagine you could do much better than this. DeGennaro reads his own lectures, and he’s funny, personable, and clear. (I listened to this one, and it’s fun to hear him stumble every now and then. He’s got a good, strong voice, but he’s not a professional reader, so there are several spots where he misses a word and goes back for it. Works for me, humanizing the whole thing.)
DeGennaro is good with a metaphor and good at organizing his lectures. I suspect he’s a fine teacher, and I bet I would enjoy being in his classroom.
The content here is generally not striking, but it shouldn’t be. He’s pitching this toward people who have a sense of how the market works but might not know it all. So, he goes through the material thoughtfully and point by point. I don’t knock him for often repeating himself across lectures. He’s teaching, and that means clarifying fundamentals so we can understand greater implications.
The big, largely original takeaway for me with this is his perspective on mutual funds. He points out, as every mutual fund advocate will, that if you invest in an index, you’ll get “average” returns. Many early managed-fund advocates asked whether you really wanted something average, to which mutual fund advocates replied – but average every year is better than the average of other funds year-to-year average.
What DeGennaro says that most clarifies that is, Don’t think of it as a competition. If you go into the market thinking you can beat it, you’re already sunk. If you go into it with an eye toward beating others, then you’re looking at it wrong.
As a bottom line, if you’re fortunate to have funds to invest (and, of course, most people are not – though more than you might think are) the point is to let those funds grow in ways that will let you use them later. Do your thing and let others do theirs.
Again, there’s little that’s original here, but it’s all well-presented and clear. Like an indexed fund itself, that’s all it promises, and it delivers.
I’m not a finance professional by any stretch, but I have a pretty good sense of the basics of investing and the markets. I try to read something on it every few years, though, since it’s good to be reminded of much of what I might have forgotten or not recently considered.
And, for reminding of those basics, it’s hard to imagine you could do much better than this. DeGennaro reads his own lectures, and he’s funny, personable, and clear. (I listened to this one, and it’s fun to hear him stumble every now and then. He’s got a good, strong voice, but he’s not a professional reader, so there are several spots where he misses a word and goes back for it. Works for me, humanizing the whole thing.)
DeGennaro is good with a metaphor and good at organizing his lectures. I suspect he’s a fine teacher, and I bet I would enjoy being in his classroom.
The content here is generally not striking, but it shouldn’t be. He’s pitching this toward people who have a sense of how the market works but might not know it all. So, he goes through the material thoughtfully and point by point. I don’t knock him for often repeating himself across lectures. He’s teaching, and that means clarifying fundamentals so we can understand greater implications.
The big, largely original takeaway for me with this is his perspective on mutual funds. He points out, as every mutual fund advocate will, that if you invest in an index, you’ll get “average” returns. Many early managed-fund advocates asked whether you really wanted something average, to which mutual fund advocates replied – but average every year is better than the average of other funds year-to-year average.
What DeGennaro says that most clarifies that is, Don’t think of it as a competition. If you go into the market thinking you can beat it, you’re already sunk. If you go into it with an eye toward beating others, then you’re looking at it wrong.
As a bottom line, if you’re fortunate to have funds to invest (and, of course, most people are not – though more than you might think are) the point is to let those funds grow in ways that will let you use them later. Do your thing and let others do theirs.
Again, there’s little that’s original here, but it’s all well-presented and clear. Like an indexed fund itself, that’s all it promises, and it delivers.
September 7, 2020
"The best time start was 15 years ago. The second best time... is right now."
While I am certainly no expert, I have at least been exposed to this content one way or another previously. Very good reinforcement/refresher material speaking for myself.
Walking away from this with more peace of mind that I am on right track is great.
In conclusion, this is a great starting point of stock market newbies and I would have absolutely rated this much higher if it was the first time I was exposed to this material.
I would recommend this to anyone who makes more than 40k a year, wants to learn more about the stock market, and is a future minded individual with retirement goals.
While I am certainly no expert, I have at least been exposed to this content one way or another previously. Very good reinforcement/refresher material speaking for myself.
Walking away from this with more peace of mind that I am on right track is great.
In conclusion, this is a great starting point of stock market newbies and I would have absolutely rated this much higher if it was the first time I was exposed to this material.
I would recommend this to anyone who makes more than 40k a year, wants to learn more about the stock market, and is a future minded individual with retirement goals.
October 5, 2020
This course is an introduction to the stock market and stock investing for novices and experienced investors alike. Professor DeGennaro uses simple analogies to explain the origin of stocks and other securities, as well as their relative risks. He stresses the danger of trying to beat the market by trying to pick winners, predict price trends, or otherwise find opportunities that other investors have missed. Far better, he counsels, to own a well-diversified portfolio of individual stocks or stock funds, which tend to grow as the economy grows. He offers detailed guidance on how to pursue this course.
February 18, 2024
I appreciate the simplified approach of this course on several complex topics. I walked away with a solid understanding of everyday action steps like using tax-advantaged investing accounts, such as IRAs and 401(k)s, to a general understanding of how to analyze stocks, the Federal Reserve, company financials, and so much more. It is a rich course that provides so much value for novices and the experienced, and well-heeled alike. I am so glad that I chose this course, and I am happy to share it with my family. Professor DeGennaro also has an approachable teaching style peppered with humor and delivered with candor.
February 19, 2018
A solid overview for beginners. Doesn't go into a lot of depth on any particular sub-topic, but covers a broad spectrum of stock market strategies, influences and terminology. I'd recommend it for someone new to the market. It's not CNBC-style charts and talking point, but rather the ideas behind those charts and talking points. It covers types of investments, the role of the larger economy in stock market movements, valuation and more. It's a good launching point.
Good narration, but should be sped up. I listened at about 1.5 times speed, sometimes faster, sometimes a wee bit slower.
Good narration, but should be sped up. I listened at about 1.5 times speed, sometimes faster, sometimes a wee bit slower.
June 29, 2019
With all of the talk about 401k, Pensions, stocks, investments etc, I wanted to see how ignorant I was. I needed to get a better understanding of what other people are doing with my money and decide I should take more of an active role in my investments. I’ve had 401k for over 20 years and it is invested in only GOD know what. First, I wanted to get educated in what exactly stocks, bonds and mutual funds are and how they work. This audiobook gave me the basic understanding to ask the right people the right questions.
June 23, 2021
I have been investing in equities, mutual funds and bonds for a while now and I feel like I am learning something new every time I invest. In the beginning, I was rather sceptical that this course would be rather elementary for me. But there was also a part that pushed me to take it so I could build a solid foundation. This turned out to be true as I learnt many new interesting aspects that I could use while I invest. I plan to revisit this book to remember and reflect on the skills that I learnt from it.
May 22, 2019
Not riveting by any sense of the word but interesting in a bare-bones academic sense as far as the actual nuts and bolts of how the stock market works and all the pieces move and interact with each other.
This would be a great primer to recommend to everyone just stepping into investing and even some people that have been doing it for years. I think there are a lot of misconceptions regarding investing and this book goes a long way towards clearing those up and demystifying the process.
This would be a great primer to recommend to everyone just stepping into investing and even some people that have been doing it for years. I think there are a lot of misconceptions regarding investing and this book goes a long way towards clearing those up and demystifying the process.
February 18, 2021
As a primer for US based would be investor - extra cool. As anything else, it does not only lack depth (which is understandable), but also goes too much into very narrow field of understanding of the markets. However, what was really a bit problematic for me was amount of attention given to avoiding taxation.
On the other hand, I really have to say that as a "do's and dont's", its realistic and has just the right balance of encouragement and cautions towards safety.
On the other hand, I really have to say that as a "do's and dont's", its realistic and has just the right balance of encouragement and cautions towards safety.
April 4, 2018
Pretty entertaining and insightful. This course comprehensively covers what the stock market is and how it works. It goes over some of its history and high profile legal cases. By nature it covers how the treasury works and influences the market. It provides investing strategies and use cases. Several additional sites containing information were provided.
February 11, 2021
I'm not sure what I expected going into this book, but in hind sight I got what could be expected from a course on the stock market. While not exactly boring, even relatively entertaining for a book about markets, it seemed mostly basic information that would be review from basic economics classics.
August 18, 2021
Great teaching style and it certainly sets your mind straight about how not to invest, and enables you to have a meaningful contemplation about what you really want from your investing. But, I can't really say that I am good to go and invest after listening to this course. However, there were some very important take aways: a) you can't beat the market, b) people who tell you they can beat the market for you, are lying c) diversify, d) know what you want - where you are on the risk/return trade-off scale.
Displaying 1 - 30 of 75 reviews