Lesson 4: What is the stock market and how does it work?

Every day millions of shares, or equities, are traded on the world’s stock markets,

But how does the market decide what the shares are worth? How do we know if it's the right price? And is is it possible to spot shares that are 'mis-priced'?

AcuityINSIGHT: Negative interest ratesIn March this year, the UK Government issued its first negative-yielding gilt borrowing £3.8 billion at -0.003% for a 3-year maturity. In other words, they are getting paid to borrow money by investors! What a strange world we live in today.

AcuityINSIGHT: Equity markets and US PresidentsWhen it comes down to the returns of stock markets under different Presidents – Democrat or Republican – does it really matter who is in power? Should we change our portfolios? Can we predict what is going to happen?

AcuityINSIGHT: Investing using the rearview mirrorIf we could invest by simply looking at what has done well in the recent past - and by that we mean the past few years, not just months - then life would be so much simpler.

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