In this module, we will learn about stock valuation. First, I want you to think about the recent technology innovations around you, such as artificial intelligence, machine learning, Virtual reality, Cloud computing and a new biotech Medicine. All these technologies help us to shape every aspect of our lives and our future. But they have one thing in common. The innovations are led by large corporations and they need a large amount of capital investments. In order to bring a new product to market, companies must find ways to fund their research and development, production and marketing. One major way is to issue stocks to raise capital. One great thing about issuing stocks is that companies don't need to pay interests and principles. They are not obligations for the companies. Even if the company would be unable to generate enough dividends to pay them in the short run, investors are fine with it, as long as the company has a great potential for future growth. Investors are happy to invest in the company, and grow their wealth with the company. From the perspective of an investor, stocks also represent great investment opportunities. Stocks can generate a return significantly higher than other investment makers, such as bonds and money market funds. The risks of stocks are inline with their returns. There's no guarantee that the stock will grow and do well and the investors could lose money that they invested in stocks. But one thing designed to protect stock investors, is the limited liability. Stocking investors don't need to pay back the debt of the company even if companies go broke. All they can lose is their initial money they invested. Meaning their risks are bounded from below. Otherwise, no one there's to touch the stock market. The stocks are traded in the stock market and investors need to know how to price the stocks so that they can judge whether the stock investment is a good deal or not. In this module, let's get introduced to the basic concepts about stocks, such as the difference between a common stock and a preferred stock. Where to get information about stock trading. How to compute the stock prices. How to judge whether a stock is overvalued or undervalued. How to value growth opportunities of a stock. What are the major stock indexes in the United States, and how stocks are traded in the stock market. After this module, you should be able to have a brief idea about the stocks and the stock market. The last thing I would like to remind you is that stock investment is art instead of science. You need to know the basics, but you also need to accumulate the experience and make your own judgment. What make things even more interesting is luck. It plays a role in the stock investment. I hope you enjoyed this interesting game.