Modern finance is very complicated. There are derivatives, cryptocurrencies, syndicated loans, market flash crashes, quantitative easing announcements, and more. To understand everything, you probably need a few acronyms beside your name—CFA, ACCA, CISI, and so on.
Yet, financial markets always have—and are still—based on a simple idea: let us connect the people with money which they have no present productive use for, to people without money but with a present productive need for money.
In other words, financial markets are all about matching savers (investors) to borrowers (capital-raisers).
Anything built on top of that—stock exchanges, pension funds, securities & exchange regulators, etc.—is all about formalising this process and making it more efficient.
Financial markets are usually analysed from the perspective of the borrowers—like Stears Business did with Jumia and other growth companies. The investors, however, (we will drop the saver tag from here) are equally important.
Most investors have two