Equity - or public equity in the form of stocks is issued by companies. Not only companies can borrow - and not only companies can borrow through securitised debt.
If you have gone through the videos here, read the book and really delved into the subject and you understand risk, time horizon - what is sure and what is total gambling, and you have a long-term view and understand how investing works - then prudently beginning is the next step.
Companies are often valued on earnings or multiples of earnings - for example the P/E ratio. One year of earnings might not tell you that much however because earnings can be volatile - especially if revenues/sales change.
A number of the valuation methods refer to discounting - discounting cash flows - discounting dividends. This video looks at what discounting is - and how to some extent it is the inverse of compounding.
An introduction to what has been called the 8th wonder of the world - compounding. The principle that allows small sums to grow to large sums over time.
An introductory summary of hedge funds. There is a lot more on this in the book because it is easier to convey in a written format than on tape - also at more info at savingandinvesting.c om.
It is the interaction between providers and users of capital that forms the basis of our financial system. It is that which allows our money to grow and for companies and governments to have access to capital. In fact, it is that interaction which forms the basis of our financial system.
Everyone should know what a stock and a bond are - this video gives a quick intro to that. What stocks and bonds are has a lot to do with how providers of capital interact with users of capital (through equity (which includes stocks for many large companies) and debt (which includes bonds for many large users of capital).
