A Thorough Explanation Of Stock Market Fundamentals: Understanding The Basics

The stock market is a very dynamic and rewarding marketplace where buyers and sellers collaborate with each other to trade the shares of a company. Knowledge of the stock market essentials is critical to make a wise and smart purchase, because the money invested in the company’s growth and success will become profitable income for the investors.

Understanding the fundamentals of stock market investing is possible when you enroll for a course that teaches the basics in a systematic manner. There are some excellent stock market courses in Abu Dhabi offered by reputed institutes like Stewart Academy. These courses would let you excel in the key concepts and principles that guide the stock market. You can navigate the stock market with ease and confidence when you are familiar with the working of the stock market.

Here are some of the basics of the stock market investment fundamentals:

What is the Stock Market?

The stock market is a very sensitive market where investors can purchase ownership holdings of public limited companies. The company’s growth and loss will affect the investor because they have the stock or share that represents the ownership in the company.  The supply and demand of the stocks in the market is a precise determiner of its value. Other factors like industry trends, economic conditions and company’s performance influence stock prices.

Some terminologies to be aware of in stock market investments

The stock market courses in Abu Dhabi would teach you the following terminologies and their working importance:


Stocks or shares are the ownership stakes in a company. When you purchase the stocks, you become a shareholder, and you will have certain rights like receiving dividends, voting etc.


This is what the investor earns when the company makes a profit. Investing in a growing company will provide the source for a steady stream of income for the investor.

Market capitalisation

Market capitalisation, also known as market cap, is calculated by multiplying a company’s outstanding shares with the share’s price. It gives the complete worth of the company’s outstanding shares.


Index measures the price performance of the stocks or securities. It is a benchmark that analyzes the performance of a specific set of stocks, and compares the returns generated by portfolio manager, mutual funds etc.

Some points to consider

The trading courses in UAE would teach you a few things to keep in mind while investing. They are:

Defining financial goals

Your investment decision, whether long term or short term, is dependent on your financial objectives. So identify your financial goals correctly before making investments.

Risk tolerance

The investment strategy is necessary to know your risk tolerance. Are you ready to take risks? Or do you prefer to play it safe?

Fundamental analysis

Performing a fundamental analysis of a company’s financial health will help determine the intrinsic value of its stock. It would also shed light on the company’s growth potential.

Technical analysis

Through technical analysis, you will learn how to select the best stocks to make investments in. It will analyze the past data and predict future price movement of the stocks.

Completing the trading courses in UAE would let you enter the market armed with accurate and precise knowledge on how to do your investments correctly.

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