The course consists of 27 modules. It starts with investment basics but also covers intermediate and advanced topics. Here's a detailed list of what you can expect in your course:
Module 1 - Introduction to investing on the JSE
Investing provides an exciting alternative to the traditional way of making money - the first module shows why.
- Why invest on the stock market?
- Aren't shares very risky?
- A simple plan to achieve financial success
- Where do I start?
Module 2 - Listed Companies on the JSE
You're going to need some background to the JSE and how companies are listed. How does investing on the stock market benefit you? This module answers this question and more.
- The purpose and benefits of a stock exchange
- A brief history of the Johannesburg Stock Exchange
- Membership and deregulation of the JSE
- Listing a company
- Methods of listing a company
- Pre-listing statements
- The advantages of listing a company.
- Investor protection
- A company prospectus
- The King report on corporate governance
Module 3 - The Company as the basic structure for listed businesses
If you decide to invest in the shares of a company, it is important that you know what a company actually is: how it is formed, how it functions and how you play a role. Discover what rights you have as a shareholder:
- What are the different forms of enterprise?
- The company as a separate legal entity
- The attributes of a public company
- The formation of a company
- Share capital of a company
- The capital maintenance concept
- Other types of shares
- Meetings of shareholders
- Voting by shareholders
- The company director
- Rights of the ordinary shareholder
Module 4 - Share Basics
You need to know some basics before you can start investing. Learn some important terms, how accurate share prices are and when and why they move up and down.
- Share terms
- Market value ratios
- Accuracy of the share prices and the discounting process
- Some reasons why prices move up and down
Module 5 - Trading on the JSE
You've learnt the basics and now need the hard facts. How do you open a stockbroker's account? How do you purchase and sell a share? Various advantages and disadvantages are listed here:
- Advantages of investing in listed shares
- Disadvantages of investing in listed shares
- Opening a stockbroker's account
- The Johannesburg Equities Trading System (JET)
- Purchasing a share
- Selling a share
- Tips for the pricing of bids and offers
- Protection of investors
- Costs involved in buying and selling shares
- The Broker Deal Accounting System
- Central Depository
Module 6 - Introduction to fundamental analysis
Before you become a shareholder in a particular company, it is necessary that you do careful research about the actual company and its future potential. Learn how to analyse a a company's financial statements so that you can decide whether it will be a worthwhile investment.
- What is fundamental analysis?
- Various fundamental factors
Module 7 - Tracking the market
You need to be on top of your game when it comes to tracking the stock market. The best way to determine the general direction of the market is to follow and understand what the market is doing everyday.
- Why should you track the market indices?
- What are the JSE Actuaries indices?
- The net advance / decline ratio
- The ratio of new highs to new lows
- Overseas indicators
- Reading the share prices in the newspaper
- Practical suggestion of how to track the market
Module 8 - Introduction to the financial accounts of a company
Before you buy shares in a particular company, it is necessary that you understand how to analyse their financial accounts. This will give you, as a potential investor, a good understanding of the company and the direction they are taking.
- Transactions in a company
- Doctrine of disclosure and annual financial statements
- Fair presentation of the company's financial situation
- The double entry accounting system
- Fundamental accounting concepts
- Other accounting conventions and the interpretation of financial statements
- How are transactions recorded in the balance sheet
- How are transactions recorded in the income statement
Module 9 - Introduction to Financial Ratios
Financial ratios are historical in nature and are generally a good indicator of how a company has performed in the past few years. Develop a clear understanding of a ratio by looking at its relevance to previous years and with similar companies.
- What is a financial ratio?
- Profitability ratios
- Debt management or financial leverage rations
- Liquidity or solvency ratios
- Asset management or activity ratios
- Economic value added ratio (EVA)
- Market value ratios
- Final note on the use of ratios
Module 10 - Basic investment principles
It is important that you remain flexible in your approach to stock market investing. It is also vital that you identify and put into practice those investment principles that will ensure success.
- What is your specific investment objective?
- Diversification
- Get an idea of where the overall market is trading
- Don't just buy the shares, buy the whole business
- Invest in winning companies
- Invest in management
- Rate of increase in earnings per share
- Size of the company
- Level of gearing
- Cash flow
- Know the basic facts about the company before investing
- Price graph
Module 11 - Fundamental analysis of a listed company
Using an example of a listed company, explore and discover how to make an in-depth analysis of the company's annual report.
- Financial highlights
- The Chairman's report
- Segmental and geographic analysis
- Operations review
- Value added statement
- Report of the independent auditors
- Five year summary of results
- The income statement
- The balance sheet
- The cash flow statement
- The report of the directors
- Notes to the annual financial statements
- Conclusion
Module 12 - Basic Introduction to technical analysis
Technical analysis is based on the assumption that the value of a share is not important. Why is this and what approach does a technical analyst adopt? This question is answered here.
- What is technical analysis
- Various indicators and explanation
Module 13 - Money management strategy
There are various risks involved when you decide to invest your money. You need a plan of action and a well defined investment and money management strategy that will help reduce these risks and maximise your portfolio returns over a long period of time.
- Introduction to money management
- Implementing a stop loss strategy
- When to sell your winning shares
- Pyramiding your purchases
- How many shares should you have in your portfolio?
- Averaging down your purchases
- Conclusion
Module 14 - How to select a shortlist of shares
Once you have established your investment objectives, the next step is deciding what shares you will select to invest in. Various sources provide you with the necessary information in order to make this decision.
- Review the list of shares making new highs
- Review list of top ten shares up
- Sectors where there is a lot of activity
- Company reports in the newspaper
- Review price graphs
- Review newspaper
- Review financial weeklies
- Review the JSE guides
- Radio
- Internet
- Market newsletters
Module 15 - Worksheets
Complete these three easy to use worksheets as a basis for share selection and how to monitor your portfolio.
- New share investment
- Share selection worksheet
- Share portfolio / percentage movement
Module 16 - Examples of winning strategies of top investors
"A successful trader is rational, analytical, able to control emotions, practical and profit orientated." Find out who said this and other inspirational quotes and valuable tips.
Module 17 - Various economic and market statistics to put things into perspective
Module 18 - Basic economic theory
Every business functions in an economic environment. As an investor, you need to have a good understanding of the economy before you consider investing your funds in a listed company.
- Basic principles
- Money flows
- Government policy
- Balance of payments
- Government debt
- The fixed interest capital market
- Money market
- An expose of the US situation
Module 19 - Corporate restructuring
Companies are constantly looking for ways to add value to shareholders. Acquiring companies and then selling them off can make the enlarged company more valuable. However, this corporate restructuring comes with its own set of problems which the investor needs to be aware of.
- Corporate deals
- Mergers and acquisitions
- Rights offers
- Cautionary announcements
- Share splits and consolidations
- Capitalisation issues
Module 20 - Personal planning
Investors and active traders need to be aware of various income tax considerations when buying and selling shares. Include this process in your personal planning phase.
- Income tax specifications regarding investment / trading
- How best to structure your investment portfolio
Module 21 - Other investments
You have a clear understanding of shares at this stage. Learn more about other investments or traded instruments that you could invest in.
- Futures
- Options
- Warrants
- Unit trusts
Module 22 - Forwards and Futures
-
Forwards and Futures contracts
-
Futures trading strategies
-
Leverage and risk
-
Types of Futures contracts
-
Pricing of SSF’s
-
Pricing of Stock Index Futures
-
Futures trading in South Africa
Module 23 - Options and Warrants
-
Valuing Options
-
Significant aspects of organized Options markets
-
Option trading strategies
-
Hedging with Options
-
Warrants
-
Option trading in South Africa
Module 24 - Contracts for Difference (CFDs)& Financial Spread Betting
-
Equity CFDs
-
Long and Short Equity CFD trades
-
Margin trading
-
CFD vs. physical trading
-
CFD order types
-
Index CFDs
-
Financial Spread Betting
-
Types of bets
-
CFDs and Spread Betting in South Africa
Module 25 - Foreign Exchange (Forex) Trading
-
The nature of foreign exchange markets
-
The bid-offer spread
-
Currency “pips”
-
Spot and forward markets
-
Trading on margin
-
Alternative methods of Forex trading
-
Forex trading in South Africa
-
Determinants of currency exchange rates
Module 26 - An overview of the main sectors of the JSE
Module 27 - Putting all the theory into practice
Jerome Wyngaard (Sales Executive)
021 700-4828
076 909-7702
086 582-2740
David Bradley (Sales Executive)
