Stock Textbook

The rights a share gives you, capital structure, the difference between market cap, enterprise value (EV) and free float, and how rights offerings, convertible bonds and splits affect existing shareholders.

A deep look at the regular session, call auctions and after-hours trading, the alternative exchange, price limits, volatility interruptions (VI), circuit breakers and sidecars, market warnings and administrative issues in Korea.

From limit and market orders to conditional limit, best-price and best-priority orders, IOC and FOK, matching rules and single-price auctions, and the traps in reading the order book and trade strength.

Settlement dates and cash balance, margin trading and unpaid purchases, forced liquidation, fee structures, the securities transaction tax, dividend tax and comprehensive financial income taxation, and who pays capital gains tax on Korean stocks.

The difference between periodic, ad hoc and fair disclosures, what to check in rights offering and convertible bond filings, 5% ownership reports and insider changes, audit opinions and going-concern doubts — the order in which to read Korean disclosures.

How the three statements connect, consolidated and separate statements, net income attributable to owners, one-off items, working capital and free cash flow, debt and interest coverage.

Relationships such as P/B = P/E × ROE, enterprise value multiples, the sensitivity of dividend and cash flow discount models, the P/E paradox of cyclical stocks and value traps, with worked examples.

The asymmetry of recovering losses, diversification and correlation, position sizing by account risk, volatility drag in leveraged and inverse products, and biases such as loss aversion and the disposition effect.

Where US orders fill (exchanges, dark pools, market makers), the national best bid and offer (NBBO), opening and closing auctions, hours and holidays, T+1 settlement, LULD and circuit breakers.

The risks of stop and trailing stop orders, trading outside regular hours, currency costs, regulatory fees, ADR custody fees and PTP withholding, dividend withholding, and filing Korean capital gains tax on foreign stocks.

The report types and deadlines on SEC EDGAR, how an earnings release is structured, guidance and consensus, GAAP and non-GAAP, stock-based compensation, and the expected move implied by option prices.

The Fed’s goals and tools, Treasury yields and the yield curve, the dollar and the currency effect for won-based investors, concentration in cap-weighted indexes, and flow events such as option expirations and index rebalances.

How the VIX is calculated from option prices, how to turn it into an expected monthly or daily move, its history of spikes and term structure, VKOSPI and CNN’s Fear & Greed Index, and the traps in using them for investing.