How the stock market works

Introduction| Course| Q&As | Recommended reading| Quiz |

Introduction

Context

Most investors devote 90% of their thinking to the price of a share and whether or not it is cheap or expensive. But the total return you get from a share also depends on a host of other factors, and some of them are things which companies do to their share structure. This tutorial explains the background to 'corporate actions' and what they mean for you.

Prior knowledge required

None.

Contents

1. Why do companies list on the Stock Exchange?
2. Offers for sale
3. Offers by tender, and other methods of admission
4. The Official List
5. AIM and OFEX
6. Different types of share
7. Reasons for market indices
8. The FTSE indices
9. Sectors
10. Scrip issues
11. Rights issues
12. Convertibles
13. Warrants
14. Share buybacks
15. Shareholder perks
16. Suspension
17. Insolvency
18. Conclusion

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