Synopsis

Hi and welcome to the investing 101 website! Congratulations on taking the initiative to begin your financial education. Too many young people today grow up not knowing anything about finances or money and unfortunately it often leads to following their parent’s bad habits. Consumer debt is at an all time high, more than ever Canadians are spending more than they earn and not saving for the future. I find this such a ridiculous phenomenon that I decided to do something about it and do my part to educate the world of tomorrow, today.

The investing 101 course will educate students about the basics of stocks, bonds, mutual funds, options and portfolio building. Of course it would be difficult to teach these things in a vacuum, thus some elementary economics, among other things, is also included. It is my goal to initiate the learning process for the leaders of tomorrow. After taking this course students will have a much better understanding of the financial world around them and will hopefully develop a thirst for more. Getting people thinking about their financial future and helping them to not feel like it is a daunting situation is crucial. Also, it is my hope that this course could be, for some, the first step on the path to financial freedom. It doesn’t take a wiz to achieve this if only you just start early. It is my hope that by educating young people they can financially liberate themselves earlier in life.

Course Content.

The course has 5 components

1 - Stocks

Everyone has heard of stocks right? Sure! But, what makes a stock cost $50 Monday and $100 Friday? Where do stocks come from? How are they created? Why do they exist? Why do people pay them so much attention? Most importantly how can you use these financial instruments to generate real wealth for now or for later?

These are all questions that are answered in the first day. You will learn the basics of what stocks are how they work and how you can use them. Also you will be part of a stock picking competition that will last the duration of the course, to apply what you have learned!

2 – Bonds

Just what is a “Bond” anyhow? Does a coupon get you a discount? Is that discount a good thing?

Many people have heard the term ‘stocks and bonds’ and have a general understanding of what a stock is but ironically can’t ever really quite explain what a bond is. Truth be told the bond market is more that 3 times the size of the stock market! So why do you only hear of the stock market? The answers to these questions and more will be provided in class two. In this class the student is taken on the journey through the world of bonds, coupons, and “guaranteed investments”. Again you will learn why bonds exist, how they work and most importantly how you can profit by paying proper attention.

3 – Economics

What is the exchange rate today? Wait, what is an exchange rate and why is it always changing? Same with that interest rate, how come that thing never stays the same? And what’s the deal with inflation can’t they just solve that problem already?

Everyone has heard of supply and demand but we fail to respect how much it is a part of our lives. The answer to all the above questions is good old S&D. The third class is the key to unlocking many questions you didn’t even know you had like “why are gas stations always so close together?” Many students will have a changed view of the world after this class. We will explore the origin of interest rates, exchange rates and inflation and again most importantly how it affects us and how we can profit from it.

4 – Portfolio Building

Putting it all together. Often a candidate for the most interesting and challenging class is class 4. Here you will learn the basic rules of constructing a portfolio. How much stock to hold compared to bonds? Foreign content? How much tech how much financial stock? Why do some stocks change price rapidly and some stay constant for years? How do you identify a good stock? What percentage of my money should I have in the market? What about alternative investments?

Class 4 can’t easily be described in one paragraph. However, in it you will gain the tools necessary to build a better understanding of what kind of investor you are. You will begin to make many connections between the previous three classes and instead of 3 separate bodies of knowledge you will begin to form a massive knowledge base because of the synergies created during the cohesion.

5 – Options

Everyone has options right? Wrong! Most common investors live their entire lives without knowing what a financial option is. This is very unfortunate as the upside potential of options is often hundreds of times that of stocks. Class 5 is truly a treat for the unbounded and curious investor. In this class we unlock the secrets that the movers and shakers would love to keep to themselves. What is an option? How do you hedge yourself against stock market losses? Wait, what does hedge mean? How is it a good thing if your stock goes up OR down? You will have to wait until class 5 to find out!

Well, I hope that gives you a better idea of what the class is about. The aim is for students to come together to learn about what is invariably going to be a HUGE part of their lives, in a fun and relaxed atmosphere. There is no pre-requisite for the class. The expectation is that you don’t know a stock from a hole in the ground but would like to find out! See you in class don’t be late. Seriously, you don’t want to miss any of this.