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Introduction to Stocks and Short Selling - Revised

Finances and Banking
Free Course
Some companies issue stocks to raise money to grow and invest in their business. Stocks are, therefore, an investment. When you purchase a company's stock, you are purchasing a small piece of that company, usually called a share. You normally buy stocks with the hope that they increase in worth, but how can you profit if the stocks you bought decline in price? The answer is shorting. This course will teach you all about how shorting works.
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  • Duration

    1-2 Hours
  • Assessment

    Yes
  • Certification

    Yes
  • Responsive

    Yes
  • Publisher

    Khan Academy

Description

Outcome

Certification

View course modules

Description

Stocks are also known as shares or equity and are a type of security that signifies proportionate ownership in the issuing corporation. This entitles the stockholder to that proportion of the corporation's assets and earnings. This course will discuss how you essentially become a partial or part owner of a company when you buy stock or shares from that company. You will also learn what makes them different to bonds, which do not make you part-owner of the company involved.

Shorting stock involves the sale of stock that a seller does not own, or shares that the seller has taken on loan from a broker. This course will discuss why short sellers take on these transactions. You will learn that they act on mere speculations that a stock's price is headed downward and that if they sell the stock, they'll be able to buy it back at a lower price at some point in the future. You will also learn the importance of selling high and buying low.

The stock market plays an important role in many countries economies, both from the point of view of nations' industries, investors, and governments. This means that people who have a strong understanding of the stock market are in high demand around the world. If you are interested in getting to know more about this incredible industry, check out this course today and start learning something that can make a real difference to your bank account!

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Learning Outcomes

On successful completion of this course, you will be able to:


  • Define what stocks and shares are
  • Examine how to work out how they are valued
  • Identify how shorting works when buying and selling stocks and shares
  • Define the key concepts associated with the buying and selling of stocks and shares

Certification

All Alison courses are free to enrol, study and complete. To successfully complete this Certificate course and become an Alison Graduate, you need to achieve 80% or higher in each course assessment. Once you have completed this Certificate course, you have the option to acquire official Certification, which is a great way to share your achievement with the world. Your Alison Certification is:

Ideal for sharing with potential employers - include it in your CV, professional social media profiles and job applications
An indication of your commitment to continuously learn, upskill and achieve high results
An incentive for you to continue empowering yourself through lifelong learning

Alison offers 3 types of Certification for completed Certificate courses:

Digital Certificate - a downloadable Certificate in PDF format, immediately available to you when you complete your purchase
Certificate - a physical version of your officially branded and security-marked Certificate, posted to you with FREE shipping
Framed Certificate - a physical version of your officially branded and security-marked Certificate in a stylish frame, posted to you with FREE shipping

All Certification is available to purchase through the Alison Shop. For more information on purchasing Alison Certification, please visit our faqs. If you decide not to purchase your Alison Certification, you can still demonstrate your achievement by sharing your Learner Record or Learner Achievement Verification, both of which are accessible from your Dashboard. For more details on our Certification pricing, please visit our Pricing Page.

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