By the end of this module, you will be able to:
- Understand Capital and Capital Markets
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- Define capital and recognize its different forms, such as stocks, bonds, and real estate.
- Explain the role of capital markets in connecting investors with businesses and governments that need funds.
- Describe the Capital Market Ecosystem
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- Identify the key participants in the capital market, including investors, issuers, intermediaries, and regulators.
- Understand the function of primary and secondary markets and how they facilitate the flow of capital.
- Differentiate Financial Instruments
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- Distinguish between various financial instruments, including stocks, bonds, mutual funds, ETFs, and derivatives.
- Recognize the benefits and risks associated with each type of financial instrument.
- Explain the Roles of Key Institutions in Capital Markets
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- Outline the functions of investment banks, brokers, dealers, and central securities depositories.
- Describe the role of regulators in ensuring market integrity and investor protection.
- Understand Equities and Stock Markets
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- Define equities and explain their basic features, such as ownership, dividends, and capital appreciation.
- Understand how shares are traded in stock markets and the role of market indices in tracking market performance.
- Analyze the Role of Capital Markets in the Economy
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- Explain how capital markets contribute to capital formation, economic growth, and resource allocation.
- Understand the importance of regulation and oversight in maintaining market transparency and stability.
- Apply Knowledge of Risk and Investment Strategy
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- Assess the risks and rewards of investing in different financial instruments.
- Develop a basic understanding of how diversification and portfolio management can reduce investment risk.