BUS-123 - Introduction to Investments
Spring 2018

Southwestern Community College
Instructor: Frank Paiano


Next Exam

Next Exam
BUS-123-01
Face-to-Face
Tuesdays & Thursdays
8:35 a.m. to 10:00 am
Exam #4: Chapters 9, 10, 18, and 1; Review Chapter 6
Tentative: Thursday, May 3rd

Chapter 9: Introduction to Bonds
Chapter 10: Bond Prices and Yields
Chapter 18: Hybrid Securities, Preferred Stocks and Convertible Securities
  The Three Questions on Exam #4 about Hybrid Securities
Chapter 11: Diversification and Risky Asset Allocation
Review: Chapter 6: Common Stock Valuation
BUS-123-501 & 502
Online
Online Exam #4: Chapters 9, 10, 18, and 1; Review Chapter 6
Thursday, May 3rd, to Sunday, May 6th

Chapter 9: Introduction to Bonds
Chapter 10: Bond Prices and Yields
Chapter 18: Hybrid Securities, Preferred Stocks and Convertible Securities
  The Three Questions on Exam #4 about Hybrid Securities
Chapter 11: Diversification and Risky Asset Allocation
Review: Chapter 6: Common Stock Valuation


Announcements

Announcements for Online Students  (Announcements also available in Canvas)

Week #12 - Bond Valuations and Hybrid Securities (Snore...) - Video - Video (CC) - Audio
    Due: Chapter 9 Assignment, Exam #4 Next Week
    The three questions about hybrid securities on Exam #4

Week #11 - After Exam #3 - Introduction to Bonds (Yawn...) - Video - Video (CC) - Audio
    Due: Chapter 8 Bonus Assignment
Week #10 - Chapters 7 & 8 - Finishing Stocks - Exam #3 Starting This Thursday - Video - Video (CC) - Audio
    Due: Exam #3, Chapter 7 Assignment, The Stock Steakhouse Discussion Forum Extension until April 14th
Week #9 - The Last Two Weeks on Stocks - Chapters 17 & 7 - Chapter 8 & Exam #3 Next Week - Video - Video (CC) - Audio
    Due: Chapter 17 Assignment, The Stock Steakhouse Discussion Forum Extension until April 14th
Week #8 - Exam #2 This Week - Chapter 5, Introduction to Stocks - Chapter 6, Stock Valuation Techniques - Video - Video (CC) - Audio
    Due: Exam #2, Chapter 6 Assignment, The Stock Steakhouse Discussion Forum
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 4 Assignments, 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: 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, Short-term discussion posts due this week, Chapter 1 assignments and 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 2018 - 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-123-01 Tuesday/Thursday - Audio commentary will be created during Lecture 1 on January 30th
  You could also listen to the Audio Commentary for the Online Classes Syllabus. It is almost exactly the same.
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


Chapter 1 Materials
Presentation
Study Guide - Video Commentary - Video Commentary (CC) - Audio Commentary
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 (16 Feb 2018)  Aye! We started just before the correction. We were down 7% but now we are only down 3%. Not bad!
  Snapshot (1 Mar 2018)  Well, we had gone back up to $99,000 but then dropped back down to $95,000
  Snapshot (6 Apr 2018)  A trade war! Trade wars are not good and they are not easy to win!
  Snapshot (13 Apr 2018)  Well, we are still standin' ... kinda', sorta', not really. (Could be worse!)
  Snapshot (18 Apr 2018)  We are crawling back!Back up to a bit over $97,000!

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

Face-to-Face Class Audio Lectures (BUS-123-01)
TueThur Lecture 1 Audio -- 30 Jan    Introduction: What is an Investment?
TueThur Lecture 2 Audio -- 1 Feb    An Overview of the Investment Universe and a Brief History of Risk and Return
TueThur Lecture 3 Audio -- 6 Feb    Short-term Investments; Sample Portfolio

Chapter 4:
Mutual Funds


Chapter 4 Materials
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: 84 Years of Investing -  Commentary: Video - Video (CC) - Audio
Top 75 Holdings of ICA -  Commentary
The Benefit of Time -  Commentary
Worst Day / Best Day -  Commentary

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

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]

Top Ten Mutual Fund Companies by Assets  Investment News, John Waggoner, Sep 2017 - Careful: Different sources have different results

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 - Biography of T. Rowe Price, Jr.
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! See last presentation.
A Cautionary Tale for Investors   An example of a mutual fund without proper oversight by the Board of Directors

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

Face-to-Face Class Audio Lectures (BUS-123-01)
TueThur Lecture 1 Audio -- 8 Feb   Introduction to Mutual Funds, Mutual Fund Fees
TueThur Lecture 2 Audio -- 13 Feb   Continued Mutual Fund Fees, Start Types of Mutual Funds
TueThur Lecture 3 Audio -- 15 Feb   Finish Mutual Fund Types, Mutual Fund Case Study 1
TueThur Lecture 4 Audio -- 20 Feb   Mutual Fund Transactions and Information, Fund Families, A Sample Mutual Fund


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

Chapter 5 and
  Lecture Notes:
Introduction to Stocks



Chapter 5 Materials
Presentation
Study Guide
Assignment
Stock Markets Assignment - Commentary
Earnings Call Assignment - Commentary
Market Simulation Handout (For face-to-face class)
   Presentation (Chaos in the Classroom!): Video - Video (CC) - Audio

Internet Finance Web Sites   (Assignments, Audio lecture 2)
Presentation: Video - Video (CC) - Audio
Google Finance   Breaking News! Google Finance rolls out new version. Still kinda' lame. But at least it works!
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
Investopedia  Pretty good website (even though it is owned by the same folks who own Tinder)
The New York Times Markets Overview

FINRA - Financial Industry Regulatory Authority
FINRA
FINRA Registered Representative Brochure
The new Securities Industry Essentials Exam
 Starts October 1, 2018
Solomon Securities Industry Essentials Exam Preparation  Just one of many exam prep companies (I don't get any kickback!)
The FINRA Investor Knowledge Quiz  Actually, you should wait until the end of the semester before taking this quiz!

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 community 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 85    Types of Stocks, Growth versus Value, and Market Capitalization
Chapter 5 - Lecture 7 - Slides 86 to 93    Stock Investment 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 85    Types of Stocks, Growth versus Value, and Market Capitalization
Chapter 5 - Lecture 7 - Slides 86 to 93    Stock Investment 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 85    Types of Stocks, Growth versus Value, and Market Capitalization
Chapter 5 - Lecture 7 - Slides 86 to 93    Stock Investment 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 85    Types of Stocks, Growth versus Value, and Market Capitalization
Chapter 5 - Lecture 7 - Slides 86 to 93    Stock Investment Strategies

Face-to-Face Class Audio Lectures (BUS-123-01)
TueThur Lecture 1 Audio -- 27 Feb    Introduction to Stocks, Historical Returns, Pros and Cons, The Stock Markets
TueThur Lecture 2 Audio -- 1 Mar    Stock Transactions and Fees; Black Monday - October 19, 1987
TueThur Lecture 3 Audio -- 6 Mar    Finish Stock Transactions, Market Averages & Indexes
TueThur Lecture 4 Audio -- 8 Mar    Stock Characteristics, Begin Types of Stocks
TueThur Lecture 5 Audio -- 13 Mar    Investing Strategies, Finish Introduction to Stocks  Ooops! Lost audio file! Use online lecture #7 above.

Chapter 6:
Common Stock Valuations


Chapter 6 Materials
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

Face-to-Face Class Audio Lectures (BUS-123-01)
TueThur Lecture 1 Audio -- 13 Mar  Introduction to Valuation Techniques (Slides 1 to 6) -- Ooops! Lost audio file! Use online lecture #1 above.
TueThur Lecture 2 Audio -- 15 Mar  Dividend Discount Model, Discounted Cash Flow Model, The Value Line (Slides 17 to 48)
TueThur Lecture 3 Audio -- 20 Mar   The Value Line (Slides 48 to end of chapter), Price Models (Slides 6 to 16), Worksheet #2

Chapter 17:
Financial Statements &
Ratio Analysis


Chapter 17 Materials
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

Face-to-Face Class Audio Lectures (BUS-123-01)
TueThur Lecture 1 Audio -- 3 Apr   Financial Statements & Ratio Analysis
TueThur Lecture 2 Audio -- 5 Apr   More Ratio Analysis   Lecture continues with Chapter 7 below

Chapter 7:
Stock Price Behavior
and Market Efficiency


Chapter 7 Materials
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

Face-to-Face Class Audio Lectures (BUS-123-01)
TueThur Lecture 1 Audio -- 5 Apr   Stock Price Behavior & Market Efficiency

Chapter 8:
Behavioral Finance
and the Psychology
of Investing


Chapter 8 Materials
Presentation
Study Guide
Optional Bonus Assignment - Commentary
Technical Analysis using Yahoo Finance - Video (CC) - Audio - (Use for bonus assignment)
Random Charts Spreadsheet (Press [F9] repeatedly.) - Commentary

Who wants to be a Trader/Speculator?
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!
Kiplinger is not impressed
Warrior Trading  Three levels of suckers, ah, I mean traders!

"The investor's chief problem, and even his worst enemy, is likely to be himself." -- Benjamin Graham
Buy High, Sell Low? Sure, why not?!
Frontline Documentary: Betting on the Market   Watch for the couple from New York who put everything into AMLN.
AMLN - Amylin Pharmaceuticals   The next year, AMLM quickly lost over 95% of its value.

Series 7 Stockbroker Exam Specifications  FINRA (Financial Industry Regulatory Authority)
New Exam Coming!  FINRA wants to make it easier for you to enter the industry

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

Face-to-Face Class Audio Lectures (BUS-123-01)
TueThur Lecture 1 Audio -- 10 Apr   Behavioral Finance & the Psychology of Investing, Technical Analysis, Case Study: Apple


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

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


Chapter 9 Materials
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.
Federal Reserve Bank of St. Louis Bond Research Web Site    Great resource for researching about bonds in aggregate (but no individual bond quotes).
Treasury and Various Other Bond Rates from New York Times    Also shows yield curve which we discuss in chapter 10.
Bond Quote Examples
Ford: Mar 09 - Oct 09 - Jun 10 - Oct 10 - Mar 13 - Oct 14 - Oct 17 - Apr 18
   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 - Apr 18
   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

Face-to-Face Class Audio Lectures (BUS-123-01)
TueThur Lecture 1 Audio -- 17 Apr   Introduction to Bonds, Bonds & Interest Rates, Bond Ratings & Quotes
TueThur Lecture 2 Audio -- 19 Apr   Types of Bonds, Bond Ratings

Chapter 10:
Bond Prices and Yields


Chapter 10 Materials
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   Treasury bonds yield curve and Treasury rates
Morningstar Bond Yield Curve   Yield curve graphic is toward the lower right of the page.
Composite Bonds Rates from Fidelity

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

Face-to-Face Class Audio Lectures (BUS-123-01)
TueThur Lecture 1 Audio -- 19 Apr   Bond Yield Calculations, Current Yield, Yield-to-Maturity

Chapter 18:
Hybrid Securities
Preferred Stocks and Convertible Securities


Chapter 18 Materials
Presentation
Study Guide
Convertible Securities Assignment - Commentary
Convertible Securities Worksheet - Commentary - Answer Key

The Three Questions on Exam #4 about Hybrid Securities

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


Chapter 11 Materials
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 - As Fidelity Investments Sees It
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

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 2018 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 was not available on Half.com but may be available now
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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