BUS-123 - Introduction to Investments
Fall 2017

Fall 2017
Southwestern Community College
Instructor: Frank Paiano


Be not afraid.

"The moral arc of the universe in long, but it bends toward justice." -- Martin Luther King, Jr.

"This country is so fundamentally strong it can survive its leaders." -- Louis Rukeyser



Next Exam and Announcements

Next Exam
BUS-123-501 & 502 - Online Final Exam: Chapters 15, 14, 2, Lecture
Review all other chapters
Available Friday, December 1st until Thursday, December 7th

Chapter 15: Stock Options
Chapter 14: Futures
Chapter 2: Brokerage Firms, Buying on Margin, and Shorting
Lecture: Retirement Accounts, Real Estate, Precious Metals, Starting a Business
Review: All other chapters -- general questions
Chapter 6: Constant Perpetual Growth Model and Discounted Cash Flow Model
Chapter 10: Bond yield and pricing calculations
See Pre-final Worksheet (Hint, hint! Wink, wink! Nudge, nudge!)

Announcements  (Announcements also available in Canvas)

Week #14 - Investing - No! - *Speculating* with Options and Futures, Shorting and Buying on Margin - Video - Video (CC) - Audio
    Due: Chapter 11 Assignment

Week #13 - Asset Allocation - Exam 4 on Bonds, Hybrid Securities, and Asset Allocation - Video - Video (CC) - Audio
    Due: Exam 4, Chapters 10 and 18 Assignment,     The three questions about hybrid securities on Exam #4
Week #12 - Bond Valuations and Hybrid Securities (Snore...) - Video - Video (CC) - Audio
    Due: Chapter 9 Assignment, The Bond Beanery Discussion Forum
Week #11 - After Exam #3 - Introduction to Bonds (Yawn...) - Video - Video (CC) - Audio
    Due: Chapter 7 Assignment
Week #10 - Chapters 7 & 8 - Finishing Stocks - Exam #3 Starting This Thursday - Video - Video (CC) - Audio
    Due: Exam #3, Chapter 17 Assignment
Week #9 - The Last Two Weeks on Stocks - Chapters 17 & 7 - Chapter 8 & Exam #3 Next Week - Video - Video (CC) - Audio
    Due: Chapter 6 Assignment, The Stock Steakhouse Discussion Forum
Week #8 - Exam #2 This Week - Chapter 5, Introduction to Stocks - Chapter 6, Stock Valuation Techniques - Video - Video (CC) - Audio
    Due: Exam #2
Week #7 - Beginning Chapter 6, Stock Valuation Techniques - Exam #2 Next Week - Video - Video (CC) - Audio
    Due: Chapter 5 Assignments, Exam #2 next week
Week #6 - Continuing Chapter 5, Introduction to Stocks - Video - Video (CC) - Audio
    Due: Chapter 5 assignments due next week. Study, study, study stocks! Every day! At least one hour per day! You Can Do It!
Week #5 - After the First Exam – Starting Stocks! - Video - Video (CC) - Audio
    Due: Chapter 4 Assignments, Le Maison de Mutual Funds discussion forum
Week #4 - Finish Mutual Funds - Exam 1 This Week - Chapter 1 Assignments Due This Week - Video - Video (CC) - Audio
    Due: Exam #1, Chapter 1 Assignments
Week #3 - Starting Mutual Funds - Exam 1 Next Week – Chapter 1 Assignments Due Next Week - Video - Video (CC) - Audio
    Due: Start chapter 4 on mutual funds, Chapter 1 assignments due next week, Exam #1 next week
Week #2 - Continuing Introduction to Investments - Risk versus Return - Short-term Investments - Video - Video (CC) - Audio
    Due: Finish chapter 1 material
Week #1 - Introduction and Welcome to BUS-123, Introduction to Investments, for Spring 2017 - Video - Video (CC) - Audio
    Due: Please Introduce Yourself Discussion Forum
Week #0 - Presemester Announcement -  For students enrolled in the online BUS-123, Introduction to Investments, class



Chapter Presentations, Handouts, and Assignments


Part 1: Introduction


Syllabus:

BUS-123-501 & 502 Online - Audio Commentary of Online Class Syllabus - Long Format  Long format in Canvas
Your Humble Professor Introduces Himself
Your Humble Professor Introduces Himself (CC)  I am still futzin' around with this video stuff.
Your Humble Professor Introduces Himself with just audio
A Guided Tour of the BUS-123, Introduction to Investments, Class Web Site - Closed Captioned - Audio  Uh, what yer lookin' at right now.

Chapter 1 and Notes:
What is an Investment?
The Investment Universe
Risk and Return
Short-term Securities

Presentation
Study Guide - Video - Video (CC) - Audio
Assignment - Commentary   (The process is more important than the information and answers. Enjoy!
Short-Term Investments Assignment - Commentary
TreasuryDirect.gov Assignment - Commentary
   TreasuryDirect.gov  Your Federal Tax Dollars at Work!
   Cetes Directo    El TreasuryDirect.gov de Mexico - Miralo - Una tasa de interes mas grande que los estados unidos
How to Submit Assignments - Commentary
Discussion Boards Assignment (Online students only) - Commentary
  Add your picture to the discussion boards!  We want to see your smiling face!

Security Types Matching Handout - Answer Key   Memorize for exam!

Sample Portfolio Class Project - Commentary
  Snapshot (23 Aug 2017)  Off to a slow start. Only 0.23% up. (Better than down, eh?)
  Snapshot (29 Aug 2017)  Not much has changed, even with Hurricane Harvey.
  Snapshot (1 Sep 2017)  Hey, hey, not a bad week! We are up 1.5%.
  Snapshot (14 Sep 2017)  Up over 3% in 4 weeks. What a class!
  Snapshot (21 Sep 2017)  Uh, back down to under 2%. Still, not too shabby, Dear Students!
  Snapshot (9 Oct 2017)  Just over 2%. Nothing too exciting, up or down.
  Snapshot (20 Oct 2017)   Whoa! We are up over 5%! Well done!
  Snapshot (2 Nov 2017)  Almost up to 6%! Maybe it can go up forever, eh? (Wrong!)
  Snapshot (8 Nov 2017)  Steady as she goes -- still almost 6%.
  Snapshot (17 Nov 2017)  Back down to below 5%. Ready for World War III?

Books to Read (Eventually) - Commentary
Future Value Worksheet - Commentary - Answer Key
Future Value Tables
Turn $33,000 into $7,000,000 in just 2 years! - Rates of Return - Commentary

Short-term Securities Investments
Examples - 1  2  3 - Video - Video (CC) - Audio
Interview with a Dyed-in-the-Wool CD Investor

Online Audio Lectures
Chapters 1, 3, Notes - Lecture 1 - Slides 1 to 14    Introduction: What is an Investment?
Chapters 1, 3, Notes - Lecture 2 - Slides 15 to 34    An Overview of the Investment Universe
Chapters 1, 3, Notes - Lecture 3 - Slides 35 to 54    Risk versus Return
     Liar's Poker Story - Slide 48    Are you a Speculator/Trader or are you an Investor?
     The Value Line on the Difference between Investing and Speculating/Trading
Chapters 1, 3, Notes - Lecture 4 - Slides 55 to 72    Short-term Investments

Online Audio/Video Lectures (Apple mobile users: Search "BUS123" in iTunes.)
Chapters 1, 3, Notes - Lecture 1 - Slides 1 to 14    Introduction: What is an Investment?
Chapters 1, 3, Notes - Lecture 2 - Slides 15 to 34    An Overview of the Investment Universe
Chapters 1, 3, Notes - Lecture 3 - Slides 35 to 54    Risk versus Return
     Liar's Poker Story -- Slide 48    Are you a Speculator/Trader or are you an Investor?
     The Value Line on the Difference between Investing and Speculating/Trading
Chapters 1, 3, Notes - Lecture 4 - Slides 55 to 72    Short-term Investments

Online Audio/Video Lectures on YouTube (Closed captioning available)
Chapters 1, 3, Notes - Lecture 1 - Slides 1 to 14    Introduction: What is an Investment?
Chapters 1, 3, Notes - Lecture 2 - Slides 15 to 34    An Overview of the Investment Universe
Chapters 1, 3, Notes - Lecture 3 - Slides 35 to 54    Risk versus Return
     Liar's Poker Story -- Slide 48    Are you a Speculator/Trader or are you an Investor?
     The Value Line on the Difference between Investing and Speculating/Trading
Chapters 1, 3, Notes - Lecture 4 - Slides 55 to 72    Short-term Investments

Online Audio/Video Lectures on 3CMediaSolutions (Excellent closed captioning available)
Chapters 1, 3, Notes - Lecture 1 - Slides 1 to 14    Introduction: What is an Investment?
Chapters 1, 3, Notes - Lecture 2 - Slides 15 to 34    An Overview of the Investment Universe
Chapters 1, 3, Notes - Lecture 3 - Slides 35 to 54    Risk versus Return
     Liar's Poker Story -- Slide 48    Are you a Speculator/Trader or are you an Investor?
     The Value Line on the Difference between Investing and Speculating/Trading
Chapters 1, 3, Notes - Lecture 4 - Slides 55 to 72    Short-term Investments

Chapter 4:
Mutual Funds

Presentation
Study Guide - Commentary
Assignment - Commentary
Mutual Fund Annual Report Assignment - Commentary  (See Annual Reports and Prospectuses below)
Thrift Savings Plan Assignment - Commentary
Mutual Fund Case Studies (not an assignment) - Commentary

Strategies for Navigating the 401(k) Jungle -- Tom Petruno, LA Times
Jack Bogle sticks it to the 401(k) world  And Senator Oral Hatch is not pleased...

Mutual Fund Types Scramble Sheet (Online lecture 3) - Commentary

A Sample Mutual Fund  (Online lecture 4 - Just one of over 11,000!)
ICA Prospectus: Full - Summary - Commentary
ICA: 83 Years of Investing -  Commentary: Video - Video (CC) - Audio
Top 75 Holdings of ICA -  Commentary
The Benefit of Time -  Commentary
Worst Day / Best Day -  Commentary

Offerings of Sample Mutual Fund Companies Performance  (Online lecture 4)
Vanguard Funds Performance
American Funds Performance
Fidelity Funds    Only shows 310 or so of Fidelity's over 500 mutual funds.
Fidelity Funds and all the other funds that they offer through their web site    Over 11,000!
Dodge and Cox Funds Performance
T. Rowe Price Funds
Franklin Templeton Funds

Annual Reports and Prospectuses  (Online lecture 4 and Mutual Fund Annual Report Assignment)
Vanguard Funds
American Funds
Fidelity Funds
Dodge and Cox Funds
T. Rowe Price Funds
Franklin Templeton Funds  Choose fund and then find [Documents]

Hypothetical Illustrations  (Online Lecture 4)
$100 per month for 30 years
$100 per month for 40 years
$100 per month for 40 years - increase $10 each year
$500 per month for 20 years
   Commentary: Video - Video (CC) - Audio

Mutual Fund Commentaries, Insights, and Perspectives
Vanguard Insights - John Bogle's Official Website - Obituary for Howard Schow
American Funds Investment Insights - Obituary for Jon B. Lovelace
Fidelity Funds Insights - Viewpoints - Ned Johnson on Wikipedia
Dodge and Cox Funds Video Perspectives Gallery - Insight Papers
T. Rowe Price Investing Insights
Franklin Templeton Funds Investing Commentary - John Templeton's Official Website

No Investment Is Perfect ...
Mutual Funds Far Outperform Mutual Fund Investors   Huh? That does not make any sense. But it is true!

Online Lectures
Chapter 4 - Lecture 1 - Slides 1 to 20    Introduction to Mutual Funds
Chapter 4 - Lecture 2 - Slides 21 to 40    Fees, Expenses, and Class Shares, Oh My!
Chapter 4 - Lecture 3 - Slides 41 to 61    Types of Mutual Funds (Scramble Sheet)
Chapter 4 - Lecture 4 - Slides 62 to 79    Fund Families and a Sample Mutual Fund

Online Audio/Video Lectures (Apple mobile users: Search "BUS123" in iTunes.)
Chapter 4 - Lecture 1 - Slides 1 to 20    Introduction to Mutual Funds
Chapter 4 - Lecture 2 - Slides 21 to 40    Fees, Expenses, and Class Shares, Oh My!
Chapter 4 - Lecture 3 - Slides 41 to 61    Types of Mutual Funds (Scramble Sheet)
Chapter 4 - Lecture 4 - Slides 62 to 79    Fund Families and a Sample Mutual Fund

Online Audio/Video Lectures on YouTube (Closed captioning available)
Chapter 4 - Lecture 1 - Slides 1 to 20    Introduction to Mutual Funds
Chapter 4 - Lecture 2 - Slides 21 to 40    Fees, Expenses, and Class Shares, Oh My!
Chapter 4 - Lecture 3 - Slides 41 to 61    Types of Mutual Funds (Scramble Sheet)
Chapter 4 - Lecture 4 - Slides 62 to 79    Fund Families and a Sample Mutual Fund

Online Audio/Video Lectures on 3CMediaSolutions (Excellent closed captioning available)
Chapter 4 - Lecture 1 - Slides 1 to 20    Introduction to Mutual Funds
Chapter 4 - Lecture 2 - Slides 21 to 40    Fees, Expenses, and Class Shares, Oh My!
Chapter 4 - Lecture 3 - Slides 41 to 61    Types of Mutual Funds (Scramble Sheet)
Chapter 4 - Lecture 4 - Slides 62 to 79    Fund Families and a Sample Mutual Fund

Part 2: Stocks (a.k.a. Equities)

Chapters 5, 2, & Notes:
The Stock Market
Buying & Selling Securities
Introduction to Stocks

Presentation
Study Guide
Assignment
Stock Markets Assignment - Commentary
Earnings Call Assignment - Commentary
Market Simulation Handout (For face-to-face class)

Finance Web Sites   (Assignments, Audio lecture 2)
Google Finance and a few other Internet websites - Video - Video (CC) - Audio
Yahoo Finance   Yahoo Finance was the best free finance site. Now it is unusable. What is going on at Yahoo?
   
E-mail to and response from the CEO of Verizon   Verizon is buying Yahoo. The CEO answered me personally!
   Users sound off about newly-destroyed Yahoo Finance site
Bloomberg Finance
Marketwatch Wall Street Journal's free web site
CNBC

Ancillary Presentations
Casas de Cambio - San Ysidro and Tijuana (Lecture 2) - Video - Video (CC) - Audio - Youtube
Eighty-Three Years Ago (Lecture 3) - Commentary - Results Don't Peek!

Stock Certificates
Disney - Allied Signal - Campbell Soup Company - Commentary

Stock Worksheets
Stocks Worksheet 1 - (Lecture 3) - Commentary - Answer Key
Stocks Worksheet 2 - (Lectures 4 and 5) - Commentary - Answer Key
Stocks Worksheet 3 - (Lecture 5) - Commentary - Answer Key

Dividend Reinvestments Plans (DRIPs)
Sempra Energy DRIP (Lecture 4) - Commentary

Penny Stock and Other Stock Scams
DPER -- From $0.006 To $0.06 In Just 9 Days! (Lecture 5) - Commentary   Psst. It is now at $0.0001
Yahoo! Advertisement for AwesomePennyStocks.com - Another: "Penny Stocks Made Me Rich!"
The same people who are doing the recommending to you are the same scam artists who are selling the bogus stocks to you!
They "pump" up the price and then "dump" all the shares! It is a very old scam.

AwesomePennyStocks.com shuts down after SEC/FBI probe  Sigh. These scams will never end as long as people are greedy and stupid.
Another web site that was shut down  And they spelled "receive" incorrectly! I before E except after C...
Two British Teens Ran "Stock-Picking Robot" Scam
Recent e-mail scam using PRFC   PRFC is a legitimate company on the OTC. They warned the investment commuity that they were being used by the penny stock scammers.
Recent Penny Stock Scams
DRMC: 25-Feb-2015 - 26-Feb-2015 -- Definitive Rest Manufacturing
   Formerly manufactured mattresses but now makes materials for aerospace industry. Uh, right...
STHC: 24-Feb-2015 - 25-Feb-2015 -- SouthCorp Capital
   Started June 2014 as a company refurbishing run-down homes but now is manufacturing cans and weight loss products. Okay...

IPO -- Initial Public Offering or It's Probably Overpriced?
It's Probably Overpriced!
Rigging the IPO Game

Keep a long-term perspective
History of Bear Markets - (Lecture 3) - Commentary
Don't Lose Perspective (Lecture 5) - Commentary
BGFN, The Benjamin Graham Financial Network! - Commentary
Books to Read about Stocks - Commentary (Same as Chapter 1)

High Frequency Trading (HFT)
FINRA High-Frequency Trading (HFT) Concerns
  But this guy says that HFT is good for us! Arrgh!
  Brad Katsuyama, the Hero of Flash Boys, begs to differ. "The system is rigged."   And he started IEX to level the playing the field
    Mr. Katsuyama's full speech   The link above is an excerpt
  SEC gives approval to IEX to become a stock exchange   Capital Group, parent company of The American Funds, and other large financial firms and pension funds backed IEX
How Robinhood makes money on $0 trades

Warren Buffett and Berkshire Hathaway
The History of Berkshire Hathaway Class B Shares

Online Audio Lectures
Chapter 5 - Lecture 1 - Slides 1 to 10     Introduction to Stocks - Historical Returns - Advantages and Disadvantages
Chapter 5 - Lecture 2 - Slides 11 to 33    The Stock Markets (a.k.a. The Capital Markets)
Chapter 5 - Lecture 3 - Slides 34 to 47    Stock Transactions, Transaction Costs, and Stock Quotes
Chapter 5 - Lecture 4 - Slides 48 to 60    Market Averages and Indexes; Volatility Reexamined
Chapter 5 - Lecture 4 - Slides 61 to 74    Stock Characteristics and Measurements
Chapter 5 - Lecture 6 - Slides 75 to 93    Types of Stocks, Market Capitalization, and Stock Strategies

Online Audio/Video Lectures (Apple mobile users: Search "BUS123" College Finance" in iTunes.)
Chapter 5 - Lecture 1 - Slides 1 to 10     Introduction to Stocks - Historical Returns - Advantages and Disadvantages
Chapter 5 - Lecture 2 - Slides 11 to 33    The Stock Markets (a.k.a. The Capital Markets)
Chapter 5 - Lecture 3 - Slides 34 to 47   Stock Transactions, Transaction Costs, and Stock Quotes
Chapter 5 - Lecture 4 - Slides 48 to 60    Market Averages and Indexes; Volatility Reexamined
Chapter 5 - Lecture 5 - Slides 61 to 74   Stock Characteristics and Measurements
Chapter 5 - Lecture 6 - Slides 75 to 93    Types of Stocks, Market Capitalization, and Stock Strategies

Online Audio/Video Lectures on YouTube (Closed captioning available)
Chapter 5 - Lecture 1 - Slides 1 to 10     Introduction to Stocks - Historical Returns - Advantages and Disadvantages
Chapter 5 - Lecture 2 - Slides 11 to 33    The Stock Markets (a.k.a. The Capital Markets)
Chapter 5 - Lecture 3 - Slides 34 to 47   Stock Transactions, Transaction Costs, and Stock Quotes
Chapter 5 - Lecture 4 - Slides 48 to 60    Market Averages and Indexes; Volatility Reexamined
Chapter 5 - Lecture 5 - Slides 61 to 74   Stock Characteristics and Measurements
Chapter 5 - Lecture 6 - Slides 75 to 93    Types of Stocks, Market Capitalization, and Stock Strategies

Online Audio/Video Lectures on 3CMediaSolutions (Excellent closed captioning available)
Chapter 5 - Lecture 1 - Slides 1 to 10     Introduction to Stocks - Historical Returns - Advantages and Disadvantages
Chapter 5 - Lecture 2 - Slides 11 to 33    The Stock Markets (a.k.a. The Capital Markets)
Chapter 5 - Lecture 3 - Slides 34 to 61   Stock Transactions, Transaction Costs, and Stock Quotes
Chapter 5 - Lecture 4 - Slides 48 to 60    Market Averages and Indexes; Volatility Reexamined
Chapter 5 - Lecture 5 - Slides 61 to 74   Stock Characteristics and Measurements
Chapter 5 - Lecture 6 - Slides 75 to 93    Types of Stocks, Market Capitalization, and Stock Strategies

Chapter 6:
Common Stock Valuations

Presentation
Study Guide
Chapter 6 Assignment - Commentary
Chapter 6 Bonus Assignment - Commentary   Southwestern's Library now has The Value Line 600
    The full version of The Value Line is available at the Chula Vista and San Diego Central Libraries.
     It is also available at selected San Diego branch libraries


Pretzels Unlimited Discounted Cash Flow Spreadsheet   (Lecture 2)
Valuation Worksheet 1 - Commentary - Answer Key
   Jimba Jomba Jumba Juice Discounted Cash Flow Spreadsheet
Valuation Worksheet 2 - Answer Key

Chapter 6 Formulas
Present Value Table  (Needed for Dividend Discount Model calculations)

Online Audio Lectures
Chapter 6 - Lecture 1 - Slides 1 to 16    Introduction to Valuation Techniques, Price Ratio Models
Chapter 6 - Lecture 2 - Slides 17 to 34    Dividend Discount Models
Chapter 6 - Lecture 3 - Slides 35 to 56    Discounted Cash Flow Model, The Value Line

Online Audio/Video Lectures (Apple mobile users: Search "BUS123" College Finance" in iTunes.)
Chapter 6 - Lecture 1 - Slides 1 to 16    Introduction to Valuation Techniques, Price Ratio Models
Chapter 6 - Lecture 2 - Slides 17 to 34    Dividend Discount Models
Chapter 6 - Lecture 3 - Slides 35 to 56    Discounted Cash Flow Model, The Value Line

Online Audio/Video Lectures on YouTube (Closed captioning available)
Chapter 6 - Lecture 1 - Slides 1 to 16    Introduction to Valuation Techniques, Price Ratio Models
Chapter 6 - Lecture 2 - Slides 17 to 34    Dividend Discount Models
Chapter 6 - Lecture 3 - Slides 35 to 56    Discounted Cash Flow Model, The Value Line

Online Audio/Video Lectures on 3CMediaSolutions (Excellent closed captioning available)
Chapter 6 - Lecture 1 - Slides 1 to 16    Introduction to Valuation Techniques, Price Ratio Models
Chapter 6 - Lecture 2 - Slides 17 to 34    Dividend Discount Models
Chapter 6 - Lecture 3 - Slides 35 to 56    Discounted Cash Flow Model, The Value Line

Chapter 17:
Projecting Cash Flow
and Earnings
(Financial Statements &
Ratio Analysis)

Presentation
Study Guide
Financial Ratios Assignment - Commentary
Financial Ratios Formulas

Financial Statements
Ford Balance Sheet
Ford Income Statement
Ford Cash Flow Statement  a.k.a. Statement of Cash Flows

Online Audio Lectures
Chapter 17 - Lecture 1 - Slides 1 to 19   Financial Statements & Ratio Analysis
Chapter 17 - Lecture 2 - Slides 20 to 38   More Ratio Analysis

Online Audio/Video Lectures (Apple mobile users: Search "BUS123" College Finance" in iTunes.)
Chapter 17 - Lecture 1 - Slides 1 to 19   Financial Statements & Ratio Analysis
Chapter 17 - Lecture 2 - Slides 20 to 38   More Ratio Analysis

Online Audio/Video Lectures on YouTube (Closed captioning available)
Chapter 17 - Lecture 1 - Slides 1 to 19   Financial Statements & Ratio Analysis
Chapter 17 - Lecture 2 - Slides 20 to 38   More Ratio Analysis

Online Audio/Video Lectures on 3CMediaSolutions (Excellent closed captioning available)
Chapter 17 - Lecture 1 - Slides 1 to 19   Financial Statements & Ratio Analysis
Chapter 17 - Lecture 2 - Slides 20 to 38   More Ratio Analysis

Chapter 7:
Stock Price Behavior
and Market Efficiency

Presentation
Study Guide
Assignment - Commentary

New York Times says that women are better investors than men! - And CNN agrees.
Wise advice: Do the opposite of what everyone else is doing!  The 2000's were a rough decade for investors.
Politics & the Markets  "Poli-" means "many" and "-tics" are blood sucking insects.

Online Audio Lectures
Chapter 7 - Lecture 1 - Slides 1 to 26   Stock Price Behavior & Market Efficiency

Online Audio/Video Lectures (Apple mobile users: Search "BUS123" College Finance" in iTunes.)
Chapter 7 - Lecture 1 - Slides 1 to 26   Stock Price Behavior & Market Efficiency

Online Audio/Video Lectures on YouTube (Closed captioning available)
Chapter 7 - Lecture 1 - Slides 1 to 26   Stock Price Behavior & Market Efficiency

Online Audio/Video Lectures on 3CMediaSolutions (Excellent closed captioning available)
Chapter 7 - Lecture 1 - Slides 1 to 26   Stock Price Behavior & Market Efficiency

Chapter 8:
Behavioral Finance
and the Psychology
of Investing

Presentation
Study Guide
Optional Bonus Assignment - Commentary
Technical Analysis using Google Finance - Video (CC) - Audio - (Use for bonus assignment)
Technical Analysis using Yahoo Finance - Video (CC) - Audio - (Use for bonus assignment)
Random Charts Spreadsheet (Press [F9] repeatedly.) - Commentary

Learn to be a trader in 3 days!  Special price! Only $1,495!
Traders Boot Camp!  Only $6,900 -- That's $1,000 off the regular price!
The Last Resistance Level Before a Major S&P 500 Breakout   Example of a Technical Analyst telling you that the market could go up or down.
Bearish Engulfing Pattern!

"The investor’s chief problem, and even his worst enemy, is likely to be himself." -- Benjamin Graham
Buy High, Sell Low? Sure, why not?!

Series 7 Stockbroker Exam Specifications  FINRA (Financial Industry Regulatory Authority)

Online Audio Lectures
Chapter 8 - Lecture 1 - Slides 1 to 29    Behavioral Finance & the Psychology of Investing

Online Audio/Video Lectures (Apple mobile users: Search "BUS123" College Finance" in iTunes.)
Chapter 8 - Lecture 1 - Slides 1 to 29    Behavioral Finance & the Psychology of Investing

Online Audio/Video Lectures on YouTube (Closed captioning available)
Chapter 8 - Lecture 1 - Slides 1 to 29    Behavioral Finance & the Psychology of Investing

Online Audio/Video Lectures on 3CMediaSolutions (Excellent closed captioning available)
Chapter 8 - Lecture 1 - Slides 1 to 29    Behavioral Finance & the Psychology of Investing

Part 3: Bonds (a.k.a. Fixed, Fixed Income)

Chapters 9, 18, 19, and 20:
Introduction to Bonds

Presentation
Study Guide
Assignment - Commentary

Bond Quote Sources
FINRA bond search page   (Careful: Choose Corporate or Municipal for quick or advanced search.)
FINRA bond home page
  Presentation: Video - Video (CC) - Audio

Composite Rates
Composite Bonds Rates from Fidelity   Can be used for question #4 of assignment.
Composite Bond Rates from GMS Group   Treasury, municipal, and corporate composite rates plus CD rates
Federal Reserve Bank of St. Louis Bond Research Web Site
   Great resource for researching about bonds in aggregate (but no individual bond quotes).

Bond Quote Examples
Ford: Mar 09 - Oct 09 - Jun 10 - Oct 10 - Mar 13 - Oct 14 - Oct 17
  Presentation: Video - Video (CC) - Audio
Muni Bonds - Poway:
Feb 09 - Jun 10 - Oct 10 - Mar 11 - Oct 11 - Mar 12 - Oct 12 - Mar 15 - Oct 17
  Presentation: Video - Video (CC) - Audio
More Muni Bonds Quote Examples: Puerto Rico - City of Carlsbad - Medical Establishments - 2015 March
California Municipal Bond Quotes - Video - Video (CC) - Audio  Los Angeles Times, 7 July 2016
Advanta: May 09 - Video - Video (CC) - Audio - Sure 'nuff! They went under!
  Yet another example of the eternal tug o' war between risk and return

Bearer Bond Images  From a time when bonds had "coupons" attached to them.
Can anyone predict future interest rates?   Doesn't seem so.

Online Audio Lectures
Chapter 9 - Lecture 1 - Slides 1 to 24   Introduction to Bonds, Bonds & Interest Rates
Chapter 9 - Lecture 2 - Slides 25 to 41   Types of Bonds, Bond Ratings

Online Audio/Video Lectures (Apple mobile users: Search "BUS123" College Finance" in iTunes.)
Chapter 9 - Lecture 1 - Slides 1 to 24   Introduction to Bonds, Bonds & Interest Rates
Chapter 9 - Lecture 2 - Slides 25 to 41   Types of Bonds, Bond Ratings

Online Audio/Video Lectures on YouTube (Closed captioning available)
Chapter 9 - Lecture 1 - Slides 1 to 24   Introduction to Bonds, Bonds & Interest Rates
Chapter 9 - Lecture 2 - Slides 25 to 41   Types of Bonds, Bond Ratings

Online Audio/Video Lectures on 3CMediaSolutions (Excellent closed captioning available)
Chapter 9 - Lecture 1 - Slides 1 to 24   Introduction to Bonds, Bonds & Interest Rates
Chapter 9 - Lecture 2 - Slides 25 to 41   Types of Bonds, Bond Ratings

Chapter 10:
Bond Prices and Yields

Presentation
Study Guide
Bond Valuation Assignment - Commentary
Bond Valuation Worksheet #1 - Commentary - Answer Key
Bond Valuation Worksheet #2 - Answer Key
Bond Valuation Worksheet #3 - Answer Key
Bond Valuation Formulas
Present Value Tables
Bond Calculator Spreadsheet - Video - Video (CC) - Audio   (Lecture 2)

The Bond Yield Curve and Composite Rates
Bond Yield Curve from New York Times
Morningstar Bond Yield Curve   Yield curve graphic is toward the lower right of the page.
New York Times   Treasury bonds yield curve and composite rates
Composite Bond Rates from GMS Group  Treasury, municipal, and corporate composite rates plus CD rates

Online Audio Lectures
Chapter 10 - Lecture 1 - Slides 1 to 19    Bond Yield Calculations
Chapter 10 - Lecture 2 - Slides 20 to 39    The Yield Curve, Bond Valuation

Online Audio/Video Lectures (Apple mobile users: Search "BUS123" College Finance" in iTunes.)
Chapter 10 - Lecture 1 - Slides 1 to 19    Bond Yield Calculations
Chapter 10 - Lecture 2 - Slides 20 to 39    The Yield Curve, Bond Valuation

Online Audio/Video Lectures on YouTube (Closed captioning available)
Chapter 10 - Lecture 1 - Slides 1 to 19    Bond Yield Calculations
Chapter 10 - Lecture 2 - Slides 20 to 39    The Yield Curve, Bond Valuation

Online Audio/Video Lectures on 3CMediaSolutions (Excellent closed captioning available)
Chapter 10 - Lecture 1 - Slides 1 to 19    Bond Yield Calculations
Chapter 10 - Lecture 2 - Slides 20 to 39    The Yield Curve, Bond Valuation

Chapter 18:
Hybrid Securities
Preferred Stocks and Convertible Securities

Presentation
Study Guide
Convertible Securities Assignment - Commentary
Convertible Securities Worksheet - Commentary - Answer Key

Online Audio Lectures
Chapter 18 - Lecture 1 - Slides 1 to 17    Preferred Stock & Convertible Securities

Online Audio/Video Lectures (Apple mobile users: Search "BUS123" College Finance" in iTunes.)
Chapter 18 - Lecture 1 - Slides 1 to 17    Preferred Stock & Convertible Securities

Online Audio/Video Lectures on YouTube (Closed captioning available)
Chapter 18 - Lecture 1 - Slides 1 to 17    Preferred Stock & Convertible Securities

Online Audio/Video Lectures on 3CMediaSolutions (Excellent closed captioning available)
Chapter 18 - Lecture 1 - Slides 1 to 17    Preferred Stock & Convertible Securities

Part 4: Portfolio

Chapter 11:
Diversification and Risky Asset
Allocation

Presentation
Study Guide
Assignment - Commentary

Bonds in Retirement  versus  Stocks in Retirement  versus  Balanced in Retirement  versus  Stock Fund and Bond Fund
  Presentation: Video - Video (CC) - Audio

The Argument for a Balanced Approach
Why Diversification Matters - Video - Video (CC) - Audio    Fidelity's take on diversification

Online Audio Lectures
Chapter 11 - Lecture 1 - Slides 1 to 27    Diversification and Risky Asset Allocation

Online Audio/Video Lectures (Apple mobile users: Search "BUS123" College Finance" in iTunes.)
Chapter 11 - Lecture 1 - Slides 1 to 27    Diversification and Risky Asset Allocation

Online Audio/Video Lectures on YouTube (Closed captioning available)
Chapter 11 - Lecture 1 - Slides 1 to 27    Diversification and Risky Asset Allocation

Online Audio/Video Lectures on 3CMediaSolutions (Excellent closed captioning available)
Chapter 11 - Lecture 1 - Slides 1 to 27    Diversification and Risky Asset Allocation

Part 5: Options and Futures (Derivatives)

Chapter 15:
Stock Options

Presentation
Study Guide
Bonus Assignment - Commentary
Options Notes Sheet
Options Worksheet - Commentary - Answer Key

Options Chains (a.k.a. Quotes)
Options Chains (a.k.a. Quotes) on finance.google.com and marketwatch.com: Video - Video (CC) - Audio   Johnson & Johnson

Untold Riches Can Be Yours Gambling, uh, I mean, Investing in Options!
Online Trading Academy, 5-Day, 10 Three-hour Sessions, Only $5,000!
   That's only $166.67 per hour -- what a deal! You will spend more in one hour than this entire 3-unit class. Must be worth it!
Wait! Wait! Jim tells you why he buys options!   Update: He no longer trades options...

Online Audio Lectures
Chapter 15 - Lecture 1 - Slides 1 to 16    Stock Options; Calls and Puts
Chapter 15 - Lecture 2 - Slides 17 to 30    Options Characteristics; The Break-even Point
Chapter 15 - Lecture 3 - Slides 31 to 42    Options Strategies; Covered Calls and Naked Puts
Chapter 15 - Lecture 4 - Slides 43 to 52    Employee Stock Options; Final Comments

Online Audio/Video Lectures (Apple mobile users: Search "BUS123" College Finance" in iTunes.)
Chapter 15 - Lecture 1 - Slides 1 to 16    Stock Options; Calls and Puts
Chapter 15 - Lecture 2 - Slides 17 to 30    Options Characteristics; The Break-even Point
Chapter 15 - Lecture 3 - Slides 31 to 42   Options Strategies; Covered Calls and Naked Puts
Chapter 15 - Lecture 3 - Slides 43 to 52    Employee Stock Options; Final Comments

Online Audio/Video Lectures on YouTube (Closed captioning available)
Chapter 15 - Lecture 1 - Slides 1 to 16    Stock Options; Calls and Puts
Chapter 15 - Lecture 2 - Slides 17 to 30    Options Characteristics; The Break-even Point
Chapter 15 - Lecture 2 - Slides 31 to 42    Options Strategies; Covered Calls and Naked Puts
Chapter 15 - Lecture 3 - Slides 43 to 52    Employee Stock Options; Final Comments

Online Audio/Video Lectures on 3CMediaSolutions (Excellent closed captioning available)
Chapter 15 - Lecture 1 - Slides 1 to 16    Stock Options; Calls and Puts
Chapter 15 - Lecture 2 - Slides 17 to 30    Options Characteristics; The Break-even Point
Chapter 15 - Lecture 2 - Slides 31 to 42    Options Strategies; Covered Calls and Naked Puts
Chapter 15 - Lecture 3 - Slides 43 to 52    Employee Stock Options; Final Comments

Chapter 14:
Futures Contracts

Presentation
Study Guide   No assignment
Foreign currency trading is easy - an easy way to lose money   Los Angeles Times

Online Audio Lectures
Chapter 14 - Lecture 1 - Slides 1 to 14    Futures Contracts

Online Audio/Video Lectures (Apple mobile users: Search "BUS123" College Finance" in iTunes.)
Chapter 14 - Lecture 1 - Slides 1 to 14    Futures Contracts

Online Audio/Video Lectures on YouTube (Closed captioning available)
Chapter 14 - Lecture 1 - Slides 1 to 14

Online Audio/Video Lectures on 3CMediaSolutions (Excellent closed captioning available)
Chapter 14 - Lecture 1 - Slides 1 to 14    Futures Contracts

Part 6: Margin Accounts & Selling Short

Chapter 2:
Buying and
Selling
Securities

Presentation
Study Guide
Recommended Exercise  Not an assignment! There is no assignment.
Margin and Shorting Worksheet - Commentary - Answer Key

Help! My short position got crushed and now I owe E-Trade $106,445.56!   Peter Lynch says, "Never short a stock." This guy had to learn the hard way.
Are there any honest stockbrokers?  Be careful out there! Get a good referral.

Online Audio Lectures
Chapter 2 - Lecture 1 - Slides 1 to 8    Brokerages Firms and Services
Chapter 2 - Lecture 3 - Slides 9 to 24    Buying on Margin and Margin Accounts (It is risky!)
Chapter 2 - Lecture 3 - Slides 25 to 42    Shorting Stocks (Don't do it! It is even more dangerous than margining!)

Online Audio/Video Lectures (Apple mobile users: Search "BUS123" College Finance" in iTunes.)
Chapter 2 - Lecture 1 - Slides 1 to 8    Brokerages Firms and Services
Chapter 2 - Lecture 2 - Slides 9 to 24    Buying on Margin and Margin Accounts (It is risky!)
Chapter 2 - Lecture 3 - Slides 25 to 42    Shorting Stocks (Don't do it! It is even more dangerous than margining!)

Online Audio/Video Lectures on YouTube (Closed captioning available)
Chapter 2 - Lecture 1 - Slides 1 to 8    Brokerages Firms and Services
Chapter 2 - Lecture 2 - Slides 9 to 24    Buying on Margin and Margin Accounts (It is risky!)
Chapter 2 - Lecture 3 - Slides 25 to 42    Shorting Stocks (Don't do it! It is even more dangerous than margining!)

Online Audio/Video Lectures on 3CMediaSolutions (Excellent closed captioning available)
Chapter 2 - Lecture 1 - Slides 1 to 8    Brokerages Firms and Services
Chapter 2 - Lecture 2 - Slides 9 to 24    Buying on Margin and Margin Accounts (It is risky!)
Chapter 2 - Lecture 3 - Slides 25 to 42    Shorting Stocks (Don't do it! It is even more dangerous than margining!)

Part 7: Miscellaneous Topics in Investing

Topic 1:
Retirement Accounts,
Regular Accounts,
and Annuities

Presentation
Study Guide   No assignment

Confessions of an indexed annuity salesperson
There’s a lot not to trust about annuities
You just gave your annuity agent a great vacation!
What's In It For the Annuity Salesperson! - Commentary
Too good to be true?   It's probably an indexed annuity

Online Audio Lectures
Account Types - Lecture 1 - Slides 1 to 17  Retirement Accounts, Regular Accounts, and Annuities

Online Audio/Video Lectures (Apple mobile users: Search "BUS123" College Finance" in iTunes.)
Account Types - Lecture 1 - Slides 1 to 17  Retirement Accounts, Regular Accounts, and Annuities

Online Audio/Video Lectures on YouTube (Closed captioning available)
Account Types - Lecture 1 - Slides 1 to 17  Retirement Accounts, Regular Accounts, and Annuities

Online Audio/Video Lectures on 3CMediaSolutions (Excellent closed captioning available)
Account Types - Lecture 1 - Slides 1 to 17  Retirement Accounts, Regular Accounts, and Annuities

Topic 2:
Real Estate and
Real Estate
Investments Trusts (REITs)

Presentation
Study Guide   No assignment
Worksheet - Commentary - Answer Key
This scam artist ... uh, I mean, reality show star wants to teach you how to flip real estate.  The cost for this training? Only $34,000!

Online Audio Lectures
Real Estate - Lecture 1 - Slides 1 to 18   Real Estate and Real Estate Investment Trusts

Online Audio/Video Lectures (Apple mobile users: Search "BUS123" College Finance" in iTunes.)
Real Estate - Lecture 1 - Slides 1 to 18   Real Estate and Real Estate Investment Trusts

Online Audio/Video Lectures on YouTube (Closed captioning available)
Real Estate - Lecture 1 - Slides 1 to 18   Real Estate and Real Estate Investment Trusts

Online Audio/Video Lectures on 3CMediaSolutions (Excellent closed captioning available)
Real Estate - Lecture 1 - Slides 1 to 18   Real Estate and Real Estate Investment Trusts

Topic 3:
Precious Metals,
Art, and
Collectibles

Presentation   No assignment
The only question on the final exam from this presentation is that you should just stay away from gold, precious metals, collectibles, art, etc.

Why gold is a bad investment

Online Audio Lectures
Precious Metals, Art, etc. - Lecture 1 - Slides 1 to 6   Precious Metals, Art, and Collectibles

Online Audio/Video Lectures (Apple mobile users: Search "BUS123" College Finance" in iTunes.)
Precious Metals, Art, etc. - Lecture 1 - Slides 1 to 6   Precious Metals, Art, and Collectibles

Online Audio/Video Lectures on YouTube (Closed captioning available)
Precious Metals, Art, etc. - Lecture 1 - Slides 1 to 6   Precious Metals, Art, and Collectibles

Online Audio/Video Lectures on 3CMediaSolutions (Excellent closed captioning available)
Precious Metals, Art, etc. - Lecture 1 - Slides 1 to 6   Precious Metals, Art, and Collectibles

Topic 4:
Starting
A Business

Presentation   No assignment
No questions on the final exam from this presentation.

Score San Diego (Service Corps of Retired Executives)
Kiva
Accion San Diego
South San Diego Small Business Development Center

Online Audio Lectures
Starting a Business - Lecture 1 - Slides 1 to 3   Starting a Business

Online Audio/Video Lectures (Apple mobile users: Search "BUS123" College Finance" in iTunes.)
Starting a Business - Lecture 1 - Slides 1 to 3   Starting a Business

Online Audio/Video Lectures on YouTube (Closed captioning available)
Starting a Business - Lecture 1 - Slides 1 to 3   Starting a Business

Online Audio/Video Lectures on 3CMediaSolutions (Excellent closed captioning available)
Starting a Business - Lecture 1 - Slides 1 to 3   Starting a Business

Text Book

Here are links to sellers of the 7th, 6th, 5th, and 4th edition of the text book: "Fundamentals of Investments" by Jordan & Miller
The text book is available at the college book store as well as numerous other outlets.
The text book is usually also available across the street at Otay Books.
There are now web-based versions of text books available at www.coursesmart.com.
Except for the data being updated, there are not many differences between the 4th, 5th, 6th, and 7th editions.
Also, there are two copies in the main campus library on reserve. (You can read them there but they can not be checked out)
7th Edition -- This is the "official" book of the Spring 2017 class
Amazon: https://www.amazon.com/MP-Fundamentals-Investments-Stock-Trak-card/dp/0078115663/ref=sr_1_2?ie=UTF8&qid=1470412788&sr=8-2&keywords=fundamentals+of+investing+7th+edition+jordan
Half.com: 7th edition not available on Half.com
Chegg.com: http://www.chegg.com/textbooks/fundamentals-of-investments-7th-edition-9780077861636-0077861639?trackid=67a86a11&strackid=6c290340&ii=5
6th Edition -- Very similar to the current edition (but cheaper)
Amazon: http://www.amazon.com/Fundamentals-Investments-Stock-Trak-Mcgraw-Hill-Insurance/dp/0077457641/ref=dp_ob_title_bk
Half.com: http://product.half.ebay.com/Fundamentals-of-Investments-by-Bradford-D-Jordan-and-Thomas-Miller-2011-Hardcover/99510715&tg=info
Chegg.com: http://www.chegg.com/textbooks/fundamentals-of-investments-with-stock-trak-card-6th-edition-9780077457648-0077457641?trackid=YAJcVwrZ&ii=1&om_ss=1
5th Edition -- Very similar to the current edition (but even cheaper)
Amazon: http://www.amazon.com/Fundamentals-Investments-Stock-Trak-Mcgraw-Hill-Insurane/dp/0077283295/ref=sr_1_6?s=books&ie=UTF8&qid=1322833773&sr=1-6
Half.com: http://product.half.ebay.com/Fundamentals-of-Investments-by-Bradford-D-Jordan-and-Thomas-Miller-2008-Hardcover/66239818&tg=info
Chegg.com: http://www.chegg.com/textbooks/fundamentals-of-investments-w-sp-card-stock-trak-card-5th-edition-9780077283292-0077283295?trackid=5a730d99&autosuggest=1&uqry=9780077283292&ii=1
4th Edition -- Also very similar to the current edition (but even more cheaper)
Amazon: http://www.amazon.com/Fundamentals-Investments-McGraw-Hill-Finance-Insurance/dp/0073027219/ref=sr_11_1?ie=UTF8&qid=1199133503&sr=11-1
Half.com: http://product.half.ebay.com/_W0QQprZ51726165QQcpidZ1373341548

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