Part 3/13:
The course delineates the workings of financial markets, where companies secure capital and investors grow their assets. It explains the distinctions between stocks, representing ownership in a company, and bonds, which are essentially loans given to entities. Various valuation methods such as discounted cash flow and multiples are presented, stressing that no single approach is foolproof. Analysts often employ a mix of methodologies to appraise a company's worth—applying both art and science.