BUS-123 - Introduction to Investments
Spring 2012
Southwestern Community College
Instructor: Frank Paiano
Announcements and Gradesheets
| Announcements (Online students) | |||
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Week #18 - Final Exam! - Student Evaluations - Thank you for a great semester! Week #17 - Other Investment Alternatives - Final Exam Next Week - Student Evaluations Week #16 - Brokerage Firms, Buying on Margin, and Selling Shorting Week #15 - After Exam 4 - Options & Futures: "Weapons of Mass Financial Destruction" Week #14 - Exam 4 This Week - Starting Options & Futures Next Week Week #13 - Chapter 11 - Asset Allocation - Exam #4 Next Week Week #12 – Continuing Bonds and Starting Hybrid Securities (Snore...) Week #11 – After Exam #3 – Introduction to Bonds (Yawn...) --> Week #10 – Chapter 8 – Finishing Stocks – Exam #3 Week #9 – The Last Two Weeks on Stocks – Chapters 17 and 7 – Exam #3 Next Week Week #8 – Exam #2 This Week – Chapter 5, Introduction to Stocks – Chapter 6, Stock Valuation Techniques Week #7 – Beginning Chapter 6, Stock Valuation Techniques – Exam #2 Next Week Week #6 – Continuing Chapter 5, Introduction to Stocks Week #5 – After the First Exam – Starting Stocks! Week #4 - Finish Mutual Funds - Exam 1 This Week - Chapter 1 Assignments Due This Week Week #3 – Starting Mutual Funds – Exam 1 Next Week – Chapter 1 Assignments Due Next Week Week #2 - Continuing Introduction to Investments - Risk versus Return - Short-term Investments Week #1 - Introduction and Welcome to BUS-123, Introduction to Investments, for Fall 2012 Week #0 - Presemester Announcement |
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Chapter Presentations, Handouts, and Assignments
Part 1: Introduction |
Syllabus: BUS-123-501 Online - Audio Commentary of Syllabus |
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| Chapters 1, 3 & Notes | A Brief History of Risk and Return Security Types Short-term Securities |
Presentation Handout / Assignment / Lecture Notes - Commentary Short-Term Investments Assignment - Commentary TreasuryDirect.gov Assignment - Commentary Sample Portfolio Assignment - Commentary - Snapshot (23 Sep 2012) Up 3½% since the beginning of the semester -- not bad! How to Submit Assignments - Commentary Books to Read (Eventually) - Commentary Security Types Matching Handout - Answer Key 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 Investment Examples - 1 2 Commentary 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 Overview of Investment Types Chapters 1, 3, Notes - Lecture 3 - Slides 35 to 54 Risk versus Return Liar's Poker Story - Slide 48 Are you a Speculator or an Investor? 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 Overview of Investment Types Chapters 1, 3, Notes - Lecture 3 - Slides 35 to 54 Risk versus Return Liar's Poker Story -- Slide 48 Are you a Speculator or an Investor? Chapters 1, 3, Notes - Lecture 4 - Slides 55 to 72 Short-term Investments |
| Chapter 4 | Mutual Funds | Presentation Handout / Assignment - Commentary Mutual Fund Annual Report Assignment - Commentary Thrift Savings Plan Assignment - Commentary Mutual Fund Case Studies (not an assignment) - Commentary Southwestern's 403(b)/457 Mutual Fund Options (Audio lecture 2) - Commentary: Audio - Audio/Visual Rant & Rave by Your Humble (and Angry) Professor Strategies for Navigating the 401(k) Jungle -- Tom Petruno, LA Times ICA Prospectus (Audio lecture 2) Mutual Fund Types Scramble Sheet (Audio lecture 3) - Commentary A Sample Mutual Fund (Just one of over 10,000!) ICA: 78 Years of Investing (Audio lecture 4) - Commentary: Presentation - Audio Top 75 Holdings of ICA (Audio lecture 4) - Commentary The Benefit of Time (Audio lecture 4) - Commentary Worst Day / Best Day (Audio lecture 4) - Commentary Offerings of Sample Mutual Fund Companies Performance (Audio lecture 4) Vanguard Funds American Funds Fidelity Funds Performance (This page shows over 5,000 funds, both Fidelity Funds and funds offered through Fidelity.) Fidelity Funds (This one is not interactive and it only shows Fidelity Funds, but it is easier to read.) Dodge and Cox Funds T. Rowe Price Franklin Templeton Funds Hypothetical Illustrations (Audio 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: Presentation - Audio Annual Reports and Prospectuses (Mutual Fund Annual Report Assignment) Vanguard Funds - Annual Year in Review American Funds - Investing Perspectives Fidelty Funds (Choose Fidelity Mutual Funds, then choose Browse Fidelity Funds) Dodge and Cox Funds - Annual Year in Review T. Rowe Price - Investing Insights Franklin Templeton Funds - Investing Commentary Online Lectures Chapter 4 - Lecture 1 - Slides 1 to 18 Introduction to Mutual Funds Chapter 4 - Lecture 2 - Slides 19 to 38 Fees, Expenses, and Class Shares, Oh My! Chapter 4 - Lecture 3 - Slides 39 to 59 Types of Mutual Funds (Scramble Sheet) Chapter 4 - Lecture 4 - Slides 60 to 76 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 18 Introduction to Mutual Funds Chapter 4 - Lecture 2 - Slides 19 to 38 Fees, Expenses, and Class Shares, Oh My! Chapter 4 - Lecture 3 - Slides 39 to 59 Types of Mutual Funds (Scramble Sheet) Chapter 4 - Lecture 4 - Slides 60 to 76 Fund Families and a Sample Mutual Fund |
Part 2: Stocks |
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| Chapters 5, 2 & Notes | The Stock Market Buying and Selling Securities Introduction to Stocks |
Presentation Handout / Assignment Stock Markets Assignment - Commentary Earnings Call Assignment - Commentary Using Yahoo! to Research Stocks (Assignments, Audio lecture 2) Ancillary Presentations Casas de Cambio - San Ysidro and Tijuana (Audio lecture 1) - Audio/Visual Commentary Seventy-Eight Years Ago (Audio lecture 2) - Commentary - Results Don't Peek! Stock Certificates Disney - Allied Signal - Campbell Soup Company - Commentary Stock Worksheets Stocks Worksheet 1 - (Audio lecture 2) - Commentary - Answer Key Stocks Worksheet 2 - (Audio lectures 3 and 4) - Commentary - Answer Key Stocks Worksheet 3 - (Audio lecture 4) - Commentary - Answer Key Dividend Reinvestments Plans (DRIPs) Sempra Energy DRIP (Audio lecture 3) - Commentary Penny Stock Scams DPER -- From $0.006 To $0.06 In Just 9 Days! (Audio lecture 4) - Commentary Psst. It is now at $0.0002 PPTL -- Turn $0.0138 to $0.05 In Just One Week! What is it selling for now? $0.0005 Yahoo! Advertisement for Penny Stock Newsletter - A Recent Spam E-mail Solicitation The same people who are doing the recommending to you are the same scam artists who are selling the bogus stocks to you! Penny Stocks Made Me Rich! How? By pumping up the price and dumping all the shares! Two British Teens Ran "Stock-Picking Robot" Scam History of Bear Markets - (Audio lecture 2) - Commentary Don't Lose Perspective (Audio lecture 4) - Commentary Books to Read about Stocks - Commentary (Same as Chapter 1) FINRA High-Frequency Trading Concerns BGFN, The Benjamin Graham Financial Network! - Commentary Online Audio Lectures Chapter 5 - Lecture 1 - Slides 1 to 33 Introduction to Stocks and Stock Markets Chapter 5 - Lecture 2 - Slides 34 to 60 Stock Transactions, Commissions, and Market Indexes Chapter 5 - Lecture 3 - Slides 61 to 74 Other Stock Characteristics including Dividends Chapter 5 - Lecture 4 - Slides 75 to 92 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 33 Introduction to Stocks and Stock Markets Chapter 5 - Lecture 2 - Slides 34 to 60 Stock Transactions, Commissions, and Market Indexes Chapter 5 - Lecture 3 - Slides 61 to 74 Other Stock Characteristics including Dividends Chapter 5 - Lecture 4 - Slides 75 to 92 Types of Stocks, Market Capitalization, and Stock Strategies |
| Chapter 6 | Common Stock Valuations | Presentation Handout / Assignment Chapter 6 Assignment - Commentary Chapter 6 Bonus Assignment - Commentary Aye! Southwestern's Library canceled their subscription! 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 Dividends & Earnings Spreadsheet (Audio lecture 2) Valuation Worksheet 1 - Commentary - Answer Key Jimba Jomba Jumba Juice Dividends & Earnings 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 55 Dividend Discount Models, The Value Line Online Audio/Video Lectures (Apple mobile users: Search "BUS123" in iTunes.) Chapter 6 - Lecture 1 - Slides 1 to 16 Introduction to Valuation Techniques, Price Ratio Models Chapter 6 - Lecture 2 - Slides 17 to 55 Dividend Discount Models, The Value Line |
| Chapter 17 (Chapter 7 Third Edition) |
Projecting Cash Flow and Earnings (Financial Statements and Ratio Analysis, Chapter 7 Third Edition) |
Presentation Handout / Notes Financial Ratios Assignment - Commentary Financial Ratios Formulas Walgreen Balance Sheet Walgreen Income Statement Walgreen Cash Flow Statement 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" 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 |
| Chapter 7 | Stock Price Behavior and Market Efficiency | Presentation Handout / Notes / Assignment - Commentary 2012 is going to be great! So said these oddball indicators. And so far, they have been correct. Women are better investors than men! Wise advice: Do the opposite of what everyone else is doing! Online Audio Lectures Chapter 7 - Lecture 1 - Slides 1 to 25 Stock Price Behavior & Market Efficiency Online Audio/Video Lectures (Apple mobile users: Search "BUS123" in iTunes.) Chapter 7 - Lecture 1 - Slides 1 to 25 Stock Price Behavior & Market Efficiency |
| Chapter 8 | Behavioral Finance and the Psychology of Investing | Presentation Handout / Notes / Assignment - Commentary Technical Analysis Example Using Technical Analysis in Yahoo! Finance 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! 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" in iTunes.) Chapter 8 - Lecture 1 - Slides 1 to 29 Behavioral Finance & the Psychology of Investing |
Part 3: Bonds, Interest Rates, and Bond Valuation |
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| Chapters 9, 18, 19 and 20 | Introduction to Bonds | Presentation Handout / Assignment Introduction to Bonds Assignment - Commentary Bond Quote Sources finance.yahoo.com/bonds (Yahoo bond search sometimes fails) FINRA bond advanced search page (Careful: Choose Corporate or Municipal) Yield Curve and Composite Bond Rates from Yahoo! Bond Quotes Ford: Mar 09 - Oct 09 - Jun 10 - Oct 10 - Mar 11 - Oct 11 - Mar 12 - Commentary AT&T: Apr 09 - Oct 10 - Mar 11 - Oct 11 - Mar 12 - Commentary Muni Bonds - Gardena: Mar 09 - Oct 10 - Mar 11 - Oct 11 - Mar 12 - Commentary Muni Bonds - Poway: Feb 09 - Jun 10 - Oct 10 - Mar 11 - Oct 11 - Mar 12 - Commentary Advanta: May 09 - Commentary - Sure 'nuff! They went under! When Will the Madness Stop? It already has for some bonds 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" 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 Face-to-Face Class Audio Lectures (BUS-123-01) TueThur Lecture 1 Audio -- 22 Mar Introduction to Bonds, Bonds & Interest Rates TueThur Lecture 1 Audio -- 27 Mar Types of Bonds, Bonds Ratings |
| Chapter 10 | Bond Prices and Yields | Presentation Handout / Assignment Bond Valuation Assignment - Commentary Bond Valuation Worksheet #1 - Commentary - Answer Key Bond Valuation Worksheet #2 - Answer Key Bond Valuation Formulas Present Value Tables Bond Calculator Spreadsheet - Commentary Yield Curve and Composite Bond Rates from Yahoo! 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" 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 Face-to-Face Class Audio Lectures (BUS-123-01) TueThur Lecture 1 Audio -- 27 Mar Bond Yield Calculations TueThur Lecture 2 Audio -- 29 Mar The Yield Curve, Bond Valuation TueThur Lecture 3 Audio -- 10 Apr Bond Valuation Calculations, Finish Chapter |
| Chapter 18 (Parts) | Hybrid Securities Preferred Stocks and Convertible Securities |
Presentation Handout / Assignment 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" in iTunes.) Chapter 18 - Lecture 1 - Slides 1 to 17 Preferred Stock & Convertible Securities Face-to-Face Class Audio Lectures (BUS-123-01) TueThur Lecture 1 Audio - 10 Apr Preferred Stock & Convertible Securities |
Part 4: Portfolio |
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| Chapter 11 | Diversification and Risky Asset Allocation | Presentation Handout / Assignment - Commentary Bonds in Retirement versus Stocks in Retirement versus Stocks and Bonds (a.k.a. Balanced) Audio/Visual Commentary Online Audio Lectures Chapter 11 - Lecture 1 - Slides 1 to 25 Diversification and Risky Asset Allocation Online Audio/Video Lectures (Apple mobile users: Search "BUS123" in iTunes.) Chapter 11 - Lecture 1 - Slides 1 to 25 Diversification and Risky Asset Allocation Face-to-Face Class Audio Lectures (BUS-123-01) TueThur Lecture 1 Audio - 12 Apr Diversification and Asset Allocation |
Part 5: Options and Futures (Derivatives) |
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| Chapter 15 | Stock Options | Presentation Handout / Assignment - Commentary Options Notes Sheet Options Worksheet - Commentary - Key Options Chains (Quotes) on Yahoo! Johnson & Johnson versus Oracle Optionetics 2-Day Seminar -- Only $4,495 Plus Shipping & Handling -- What A Deal! 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 3 - Slides 17 to 42 Options Characteristics and Strategies Chapter 15 - Lecture 3 - Slides 43 to 52 Employee Stock Options; Final Comments Online Audio/Video Lectures (Apple mobile users: Search "BUS123" in iTunes.) Chapter 15 - Lecture 1 - Slides 1 to 16 Stock Options; Calls and Puts Chapter 15 - Lecture 2 - Slides 17 to 42 Options Characteristics and Strategies Chapter 15 - Lecture 3 - Slides 43 to 52 Employee Stock Options; Final Comments Face-to-Face Class Audio Lectures (BUS-123-01) TueThur Lecture 1 Audio -- 19 Apr Introduction to Options Contracts TueThur Lecture 2 Audio -- 24 Apr Options Strategies, Employee stock Options |
| Chapter 14 | Futures Contracts | Presentation Handout 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" in iTunes.) Chapter 14 - Lecture 1 - Slides 1 to 14 Futures Contracts Face-to-Face Class Audio Lectures (BUS-123-01) TueThur Lecture 1 Audio -- 24 Apr Introduction to Futures (After Options) TueThur Lecture 2 Audio -- 26 Apr Review and Finish Futures |
Part 6: Margin Accounts & Selling Short |
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| Chapter 2 | Buying and Selling Securities | Presentation Handout No assignment Margin and Shorting Worksheet - Commentary - Key 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's risky!) Chapter 2 - Lecture 3 - Slides 25 to 42 Shorting Stocks (Don't do it! It's even more dangerous than margining!) Online Audio/Video Lectures (Apple mobile users: Search "BUS123" 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's risky!) Chapter 2 - Lecture 3 - Slides 25 to 42 Shorting Stocks (Don't do it! It's even more dangerous than margining!) Face-to-Face Class Audio Lectures (BUS-123-01) TueThur Lecture 1 Audio -- 26 Apr Brokerage Firms, Buying on Margin TueThur Lecture 1 Audio -- 1 May Shorting (Hoping the price goes down) |
Part 7: Miscellaneous Topics in Investing |
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| Topic 1 | Retirement Accounts, Regular Accounts, and Annuities | Presentation Handout No assignment Online Audio Lectures Account Types - Lecture 1 - Slides 1 to 17 Online Audio/Video Lectures (Apple mobile users: Search "BUS123" in iTunes.) Account Types - Lecture 1 - Slides 1 to 17 Face-to-Face Class Audio Lectures (BUS-123-01) TueThur Lecture 1 Audio -- 3 May |
| Topic 2 | Real Estate and Real Estate Investment Trusts | Presentation Handout No assignment Worksheet - Commentary - Key Online Audio Lectures Real Estate - Lecture 1 - Slides 1 to 18 Online Audio/Video Lectures (Apple mobile users: Search "BUS123" in iTunes.) Real Estate - Lecture 1 - Slides 1 to 18 Face-to-Face Class Audio Lectures (BUS-123-01) TueThur Lecture 1 Audio -- 1 May TueThur Lecture 2 Audio -- 3 May |
| Topic 3 | Precious Metals, Art, and Collectibles | Presentation No assignment Online Audio Lectures Precious Metals, Art, etc. - Lecture 1 - Slides 1 to 6 Online Audio/Video Lectures (Apple mobile users: Search "BUS123" in iTunes.) Precious Metals, Art, etc. - Lecture 1 - Slides 1 to 6 Face-to-Face Class Audio Lectures (BUS-123-01) TueThur Lecture 1 Audio -- 3 May |
| Net Present Value and Internal Rate of Return |
Additional Lecture (Not Going to Be On Final!) | BUS-123-01 Face-to-face Class Presentation Spreadsheet Audio Lecture -- 3 May |
| Review for Final | Pre-Final Valuation Problems Worksheet and Answer Key | Pre-Final Valuation Problems -
Answer Key |
Text Book
| Here are links to sellers of the 6th, 5th, and 4th edition of the text book: "Fundamentals of Investments" by Jordan & Miller The text book is also available at the college book store as well as numerous other outlets including Otay Books (across the street). 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, and 6th editions. Here are the prices for the editions across the street at Otay Books: "Fundamentals of Investments, 4th ed." 11 used copies for $23.70 plus tax. "Fundamentals of Investments, 5th ed." 12 used copies for $51.06 plus tax. "Fundamentals of Investments, 6th ed." 2 used for $144.64 plus tax and 2 new copies for $196.75 plus tax. |
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| 6th Edition -- This is the "official" book of the Fall 2012 class 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 |
| 5th Edition -- Very similar to the current edition (but 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 |
| 4th Edition -- Also very similar to the current edition (but even 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 |
