“Not Investing Is the Bigger Risk Nowadays” — Yuan Ze University Lecture Guided Students in Mastering Stock Fundamentals

On April 23, the College of General Studies at Yuan Ze University hosted a lecture in Room 3107, inviting Assistant Professor Chien-Heng Chang from the Accounting Division of the College of Management to deliver a talk titled “Not Investing Is the Bigger Risk Nowadays — Fundamentals of Stocks.”

The session combined lecture and practical exercises to help students understand the fundamentals of stocks, guiding them in learning how to analyze potential investment targets and laying a foundation for generating future passive income.

Professor Chang earnestly pointed out that today’s society has entered a highly developed stage, where the rate of inflation far exceeds salary growth. Solely relying on active income can no longer keep up with the financial pressures of the future and may even expose individuals to risks of insufficient asset protection. Therefore, understanding investment tools and skills, building investment awareness early on, and cultivating financial management abilities have become essential competencies for today’s youth.

Before delving into stock analysis indicators, Professor Chang began with relatable analogies to help students build a basic understanding of “financial condition.” He introduced the core concept of the “accounting equation” (Assets = Liabilities + Owner’s Equity), allowing even those without a finance background to quickly grasp the essence of a company’s financial structure. He emphasized that to understand a company’s financial status, one must first interpret its shareholder equity, which represents the “net worth” of the company, reflecting the true value it has accumulated, and should be the main focus for any investor.

To comprehensively assess a company’s overall “net worth,” one must be able to read the income statement, balance sheet, statement of changes in equity, cash flow statement, and statement of comprehensive income. However, merely knowing how to read these reports is not enough to survive the ever-changing stock market. To help students learn how to calculate a company’s profitability within a limited timeframe, Professor Chang arranged group exercises. Students analyzed real financial data and practiced calculating key indicators such as earnings per share (EPS), return on equity (ROE), current ratio, and free cash flow (FCF). Their ability to compute these profitability metrics in a short time effectively demonstrated the lecture’s impact, transforming theoretical knowledge into practical skills and laying a solid foundation for future investment endeavors.

While stocks are often regarded as high-risk investments, in an unpredictable economic environment, risk and opportunity coexist. Only through proactive learning can one successfully navigate and emerge stronger from the financial storms.