Watch How the Stock Market Works

Ramon P. DeGennaro, a respected Professor of Banking and Finance at the University of Tennessee, seeks to demystify the complexities of the stock market in The Great Courses Signature Collection titled "How the Stock Market Works". With a vast working knowledge of financial markets, Professor DeGennaro will take you on a captivating journey of the history and empirical evidence of the stock market in a simple yet informative manner.

The course commences by providing an understanding of how the stock market has grown into what it is today. Professor DeGennaro then delves into the fundamental mechanics that drive the stock market like financial statements, risk management principles, and corporate behavior. The latter part of the course deals with crucial topics like the role of the Board of Directors, stock market indices, and investment strategies.

One of the most outstanding aspects of "How the Stock Market Works" is Professor DeGennaro's ability to take abstract concepts and break them down into digestible and practical examples. For instance, he uses the analogy of a pizza restaurant to explain market capitalization, a key metric used to determine a company's value. This, coupled with his use of case studies from various companies in the stock market, makes the course more engaging and enjoyable.

Besides, Professor DeGennaro provides an overview of different types of financial statements and how to interpret them. He also delves into the unique nuances of financial statements for publicly listed companies, and how different company behaviors can affect them. This knowledge is crucial, especially for new investors looking to gain an edge in financial markets.

Risk management is another critical aspect of the stock market that Professor DeGennaro expounds on in great detail. He highlights the different risk categories and how to manage them effectively, including portfolio diversification, risk tolerance, and hedging. These principles are vital in enabling one to navigate the stock market profitably and mitigate losses.

Corporate behavior, governance, and social responsibility are among the most captivating sections of the course. Professor DeGennaro provides insights on how companies behave and make decisions, how corporate governance influences these decisions, and how factors like culture can affect corporate behavior. He also touches on the paradox many companies face: the tensions between the fiduciary responsibility of company management to grow value for shareholders and their social responsibility to serve society.

Towards the end of the course, Professor DeGennaro analyzes the various stock market indices, including S&P 500, The Dow Jones Industrial Average, and NASDAQ. He also covers investment strategies like long-term, short-term, growth, and value investing. The course concludes with an examination of different types of equity securities, including common stock, preferred stock, and initial public offerings (IPOs).

Overall, "How the Stock Market Works" is an informative course that provides every investor, new or seasoned, with a wealth of knowledge. Professor DeGennaro's ability to simplify complex concepts in the stock market makes it an ideal course for anyone looking to understand the inner workings of financial markets. The course is well-structured, and the professor's engaging teaching style makes each lesson informative and enjoyable. It is a must-watch for anyone serious or curious about investing in the stock market.

How the Stock Market Works is a series that ran for 1 seasons (18 episodes) between April 4, 2014 and on The Great Courses Signature Collection