BUS-123 - Introduction to Investments
Spring 2021

Southwestern Community College
Instructor: Frank Paiano

Next Exam

Exam #3
BUS-123-01

BUS-123-502
Tuesdays & Thursdays
8:35 a.m. to 10:00 am
Online
Exam #3: Chapters 17, 7 and 8; Review Chapters 5 and 6
Chapter 17: Financial Statements and Ratio Analysis
Chapter 7: Stock Price Behavior and Market Efficiency
Chapter 8: Behavioral Finance and the Psychology of Investing
Review Chapter 5: Introduction to Stocks
Review Chapter 6: Common Stock Valuation - Constant Perpetual
  Growth Model and Discounted Cash Flow Model
Thursday, April 15th, to Sunday, April 18th


Announcements

Announcements  (Announcements also available in Canvas)

Week #10 - Chapters 7 and 8 - Finishing Stocks - Exam #3 Starting This Thursday - Video - Video (CC) - Audio
    Due: Exam #3, Chapter 7 Assignment, Chapter 8 Bonus Assignment, Stocks Discussion Forum

Week #9 - The Last Two Weeks on Stocks - Chapters 17 & 7 - Chapter 8 & Exam #3 Next Week - Video - Video (CC) - Audio
    Due: Chapters 17 assignment and Exam #3 due next week!
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
Week #7 - Beginning Chapter 6, Stock Valuation Techniques - Exam #2 Next Week - Video - Video (CC) - Audio
    Due: Chapter 5 Assignments due last week, Exam #2 and chapter 6 due next week
Week #6 - Continuing Chapter 5, Introduction to Stocks - Video - Video (CC) - Audio
    Due: Chapter 5 assignments  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 (if not submitted) and Le Maison de Mutual Funds discussion forum due this week
Week #4 - Finish Mutual Funds - Exam 1 This Week - Chapter 1 Assignments (if not submitted yet) - Video - Video (CC) - Audio
    Due: Exam #1, Chapter 1 assignments (if you have not submitted them yet), Chapter 4 assignments (but next week is okay, also)
Week #3 - Starting Mutual Funds - Exam 1 Next Week - Chapter 1 Assignments and Short-term Discussion Forum Due This Week - Video - Video (CC) - Audio
    Due: Short-term Snack Shack discussion forum and Chapter 1 assignments due this 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, Add your personal email and mobile phone number to Canvas
Week #1 - Introduction and Welcome to BUS-123, Introduction to Investments, for Spring 2021 - Video - Video (CC) - Audio
    Due: Please Introduce Yourself discussion forum
Week #0 - Presemester Announcement - Video - Video (CC) - Audio
  Pre-semester annoucement for students enrolled in online class
  Pre-semester annoucement for students on waiting list for online class


Chapter Presentations, Handouts, and Assignments


Part 1:
Introduction


Syllabus:
BUS-123-01 Remote Tuesday/Thursday - Audio commentary will be created during Lecture 1 on February 1st
  You could also listen to the Audio Commentary for the Online Classes Syllabus. It is almost exactly the same.
BUS-123-502 Online - Audio Commentary of Online Class Syllabus - Long Format  Long format in Canvas
Your Humble Professor Introduces Himself
Your Humble Professor Introduces Himself (CC)   Many thanks to 3CMediaSolutions for ADA-compliant closed captioning.
Your Humble Professor Introduces Himself with just audio
A Guided Tour of the class website - Video (CC) - Audio  Uh, it's what yer lookin' at right now.
Videos on Apple iTunes  iTunes is allowing us to upload videos again. Go figure.
Zoom Room Virtual Office  We will have at least five office hours this semester, typically Thursday nights from 7:00 pm to 7:55 pm.
   Dates:
     Thursday, February 25th (coincide with exam #1)
     Thursday, March 25th (coincide with exam #2)
     Thursday, April 15th (coincide with exam #3)

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


Chapter 1 Materials
Presentation file  Every chapter has a Google Docs slide presentation that can be read with Powerpoint, Open Office, Libre Office, or Google Docs
Study Guide - Video - Video (CC) - Audio  Discussion of the chapter study guides and how to use Google Docs
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 (Everyone now is posting! Everyone now is online!) - Commentary
  Add your picture to the discussion boards!  We want to see your smiling face!

Security? But I'm not an Administration of Justice Major!   No, not that type of security!
Security Types Matching Handout - Answer Key   Memorize for exam! You must know these!
Investopedia: What is a Security?

Sample Portfolio Class Project - Commentary
  Snapshot (5 Feb 2021)  We are off to a great start, mostly thanks to a rebound from last week's pessimism
  Snapshot (12 Feb 2021)  Not much change from last week. Up 1/2%.
  Snapshot (19 Feb 2021)  Ah, down a bit. Oh, well.
  Snapshot (26 Feb 2021)  Ooops. We are a bit underwater. Nothing to panic about.
  Snapshot (5 Mar 2021)  Up! Down! Up! Down! We are holding our own through the turbulence.
  Snapshot (12 Mar 2021)  Up! Up! We have recovered and are now up over 4%. Well done!
  Snapshot (19 Mar 2021)  Holding our own at over 4%. Excellent! The volatility is real.
  Snapshot (26 Mar 2021)  Yikes! In the last hour, we rose almost 2%! The volatility is real!
  Snapshot (2 Apr 2021)  Kinda' quiet this week. No major changes.
  Snapshot (9 Apr 2021)  Not bad! We are now up over 7 1/2%! Well done!

Books to Read (Eventually) - Commentary
Future Value Worksheet - Commentary - Answer Key
Future Value Tables

Scams   They want to take your money!
Turn $33,000 into $7,000,000 in just 2 years! - Rates of Return - Commentary
  Yet another scam -- Turn $500 into $650,000 with no risk!  When you see advertisements like these, please send them my way. Thanks!
Investopedia article on recent stock scams
The same kind of illegal behaviors go on in the world of weight loss supplements  Some weight loss supplements have Prozac and Viagra!

Short-term Securities Investments
Investopedia: An Introduction to Commercial Paper
T. Rowe Price Cash Reserves Money Market Fund  Interesting. This fund can have securities that mature in up to 397 days but the average is 60 days.
U.S. Government Money Market Mutual Fund Annual Report  Scroll down to pages 5 and 6 to see the Treasury bills and corporate paper that the money market owned on September 30, 2020
Short-term Securities Examples: Video - Video (CC) - Audio
  2020 Example: Spring 2020
  2019 Example: Spring 2019
  2018 Examples: Fall 2018 - Spring 2018  The Federal Reserve Bank started raising short-term rates in 2015
  2014 Example: Fall 2014 -  Before 2015, short-term rates were close to zero!
Interview with a Dyed-in-the-Wool CD Investor  Jeanne tells you why she will only invest in short-term investments
Bankrate.com  Popular Internet site for researching short-term investments

Online Audio Lectures
Chapter 1, Notes - Lecture 1 - Slides 1 to 14    Introduction: What is an Investment?
Chapter 1, Notes - Lecture 2 - Slides 15 to 34    An Overview of the Investment Universe
Chapter 1, 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?
     Investopedia on the Difference between Investing and Speculating/Trading
     The Difference between Investing and Speculating/Trading according to Forbes
     Jack Bogle Interview with Forbes  Aha! I found it! In this interview, Jack Bogle nails the difference between investing and speculating. Scroll down to [06:09] Emotion Is The Enemy
Chapter 1, Notes - Lecture 4 - Slides 55 to 73    Short-term Investments

Online Audio/Video Lectures
Chapter 1, Notes - Lecture 1 - Slides 1 to 14    Introduction: What is an Investment?
Chapter 1, Notes - Lecture 2 - Slides 15 to 34    An Overview of the Investment Universe
Chapter 1, 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?
     Investopedia on the Difference between Investing and Speculating/Trading
     The Difference between Investing and Speculating/Trading according to Forbes
     Jack Bogle Interview with Forbes  Aha! I found it! In this interview, Jack Bogle nails the difference between investing and speculating. Scroll down to [06:09] Emotion Is The Enemy
Chapter 1, Notes - Lecture 4 - Slides 55 to 73    Short-term Investments

Online Audio/Video Lectures on YouTube (Closed captioning available)
Chapter 1, Notes - Lecture 1 - Slides 1 to 14    Introduction: What is an Investment?
Chapter 1, Notes - Lecture 2 - Slides 15 to 34    An Overview of the Investment Universe
Chapter 1, 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?
     Investopedia on the Difference between Investing and Speculating/Trading
     The Difference between Investing and Speculating/Trading according to Forbes
     Jack Bogle Interview with Forbes  Aha! I found it! In this interview, Jack Bogle nails the difference between investing and speculating. Scroll down to [06:09] Emotion Is The Enemy
Chapter 1, Notes - Lecture 4 - Slides 55 to 73    Short-term Investments

Online Audio/Video Lectures on iTunes
Scroll to individual presentations    (iTunes does not allow direct links to the presentations. Sorry.)
     Liar's Poker Story -- Slide 48    Are you a Speculator/Trader or are you an Investor?
     Investopedia on the Difference between Investing and Speculating/Trading

Online Audio/Video Lectures on 3CMediaSolutions (Excellent closed captioning available)
Chapter 1, Notes - Lecture 1 - Slides 1 to 14    Introduction: What is an Investment?
Chapter 1, Notes - Lecture 2 - Slides 15 to 34    An Overview of the Investment Universe
Chapter 1, 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?
     Investopedia on the Difference between Investing and Speculating/Trading
     The Difference between Investing and Speculating/Trading according to Forbes
     Jack Bogle Interview with Forbes  Aha! I found it! In this interview, Jack Bogles nail the difference between investing and speculating. Scroll down to [06:09] Emotion Is The Enemy
Chapter 1, Notes - Lecture 4 - Slides 55 to 73    Short-term Investments

Zoom Recorded Sessions (BUS-123-01)
TueThur Lecture 1 -- 2 Feb    Introduction: What is an Investment? - Passcode: mb&Yh9aB
TueThur Lecture 2 -- 4 Feb    An Overview of the Investment Universe and a Brief History of Risk and Return - Passcode: SQ7upVp+
TueThur Lecture 3 -- 9 Feb    Short-term Investments, Chapter 1 Assignments, Investment Club, Start Mutual Funds - Passcode: M8Z$KtM8

Chapter 4:
Mutual Funds


Chapter 4 Materials
Presentation file
Study Guide - Commentary
Assignment - Commentary
Mutual Fund Annual Report Assignment - Commentary   (You can use the Annual Reports and Prospectuses links below)
Thrift Savings Plan Assignment - Commentary
Bonus Assignment: Index Funds and Diversification - Commentary
Mutual Fund Case Studies - Commentary  (Not an assignment but something like this might just be on the exam -- hint, hint)
Investor.gov: What Are Mutual Funds   The Federal government explains mutual funds

Mutual Funds Used in Lecture #2
AB Large Cap Growth Fund   Formerly Alliance Large Cap Growth Fund
The Growth Fund of America
Legg Mason Value Trust   Now called Clearbridge Value Trust
Vanguard 500 Index Fund
Fidelity 500 Index Fund

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

A Sample Mutual Fund  (Online lecture 4 - Just one of over 12,000!)
ICA Prospectus: Full - Summary - Web page - Commentary
ICA: 87 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
$1,000 per month for 20 years
   Commentary: Video - Video (CC) - Audio

A Shares (commission-based) versus F or I Shares (fee-based)
$500,000 paying the up-front commission - 20 years
$500,000 paying the yearly annual fee (Example: Fisher Investments 1.25% yearly fee) - 20 years
$500,000 paying the up-front commission - 25 years
$500,000 paying the yearly annual fee (Example: Fisher Investments 1.25% yearly fee) - 25 years
   Commentary: Video - Video (CC) - Audio

401(k), 403(b), and other Employer-sponsored Plans
Jack Bogle sticks it to the 401(k) world  And Senator Oral Hatch is not pleased...

Offerings of Sample Mutual Fund Companies Performance  (Online lecture 4)
Vanguard Funds Performance
American Funds Performance
Fidelity Funds and all the other funds that they offer through their web site    Over 3,400 no transaction fee funds. Over 9,700 funds total!
Dodge and Cox Funds Performance
T. Rowe Price Funds
Franklin Templeton Funds    Woman CEO!

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

Top 10 Largest U.S. Fund Families: Morningstar  ThinkAdvisor, Sep 2019 - Careful: Different sources have different results
The Top Three Have Earned Their Stature  At least, according to Morningstar.com

Mutual Fund Commentaries, Insights, and Perspectives
Vanguard Insights - John Bogle's Official Website - Obituary for Howard Schow
American Funds Investment Insights - The Capital Ideas (Parent company of American Funds) - Obituary for Jon B. Lovelace
Fidelity Funds Insights - Viewpoints - Ned Johnson on Wikipedia
Dodge and Cox Funds Video Perspectives Gallery - Insight Papers - Video Gallery Check out The Case for Active Management
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.
Why The Average Investor's Investment Return Is So Low
Like Moths to a Flame   In January 2014, investors (?) rushed out of stock funds and into bond funds ... at just the wrong time. Fun video.
A Cautionary Tale for Investors   An example of a mutual fund without proper oversight by the Board of Directors
Woodford Funds Debacle   An example of a mutual fund manager who believed he was invincible. Look for long-term results, Dear Students!
  Another article about Woodford    To read this one, you have to create a free account with City Wire Selector
  Morningstar's take on the Woodford Funds    Again, Morningstar requires you to create a free account to read the article

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 iTunes
Scroll to individual presentations    (iTunes does not allow direct links to the presentations.)

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

Zoom Recorded Sessions (BUS-123-01)
TueThur Lecture 1 -- 9 Feb    Short-term Investments, Chapter 1 Assignments, Investment Club, Start Mutual Funds - Passcode: M8Z$KtM8
TueThur Lecture 2 -- 11 Feb    Mutual Funds History, Mutual Fund Fees - Passcode: CZfED402
TueThur Lecture 3 -- 16 Feb    Types of Mutual Funds, The Scramble Sheet - Passcode: *jPAx?8$
TueThur Lecture 4 -- 18 Feb    Fund Families, A Sample Mutual Fund - Passcode: sKTak^0a
TueThur Lecture 5 -- 23 Feb    Review for Exam #1, Chapter 4 Assignments, Mutual Fund Case Studies - Passcode: 77NguFcq
TueThur Lecture 6 -- 25 Feb    Review for Exam #1, Walkthough of Chapter 4 Assignment Mutual Fund Annual Report - Passcode: UGJ93jVU


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

Chapter 5 and
  Lecture Notes:
Introduction to Stocks



Chapter 5 Materials
Presentation file
Study Guide
Assignment
Stock Markets Assignment - Commentary
Earnings Call Assignment - Commentary

The difference between limit, stop, and stop-limit orders  Limit, schlimit! If you want the buy or sell the stock, just use a market order!
Market Simulation Handout
   Presentation: Chaos in the Classroom! (Spring 2020 before the lockdown): Video - Video (CC) - Audio

Internet Finance Web Sites   (Assignments, Lecture #3)
Presentation: Video - Video (CC) - Audio
The Value Line  Awesome resource that used to be pay only. Check it out!
   The Value Line now gives you some information on stocks and all info on Dow Jones Industrial Average stocks
Yahoo Finance   Yahoo Finance was the best free finance site. Now it is really bad. 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
Google Finance   Breaking News! Google Finance rolls out new version. Still kinda' lame. But at least it works!
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  Investigate your broker and brokerage firm at FINRA's BrokerCheck
FINRA Broker Check  Just type "PAIANO" for the name and hit [Enter]
FINRA Registered Representative Brochure  Registered Representative is the legal term for a Stockbroker
The new Securities Industry Essentials Exam  Started 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!

The Spread - How market makers (a.k.a. dealers) make money
Casas de Cambio - San Ysidro and Tijuana (Lecture 2) - Video - Video (CC) - Audio -
  Investopedia explains the bid-ask spread
Robinhood is not free!   How does a brokerage firm that changes no commission make money? From the spread!
The SEC is not happy with Robinhood   But doesn't everyone know that they are still being charged when they use Robinhood? (I guess not...)
How Robinhood makes money on $0 trades   Investopedia is skeptical but not very critical of Robinhood.
Robinhood Is Making Millions Selling Out Their Millennial Customers To High-Frequency Traders
    However, this guy claims the spreads on Robinhood are very high.

Even in hindsight, it is difficult to choose stocks
Eighty-Six Years Ago (Lecture 3) - Commentary - Results   Don't Peek Until You Have Chosen a Company!

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

Dividends and Dividend Reinvestments Plans (DRIPs)
Sempra Energy DRIP (Lecture 4) - Commentary
Ex-Dividend Date versus Date of Record   Investopedia explains the difference between the ex-dividend date and the date of record
The Settlement Period   Starting in 2017, stock transactions started closing in 2 days. No one told us stockbrokers!

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 $0.0000
PPTL -- Turn $0.0138 to $0.05 In Just One Week!   What is it selling for now? $0.0000
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
Email 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.
More 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...
How Bernie Madoff Made Off With $18 Billion   They also ask the question, "Are we protected from the next major Ponzi scheme?" (Spoiler: No.)

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
Another History of Bear Markets
Five Weeks of Hell - Fall 2008  It's gonna' happen ag'n, Folks. We just don't know. Be prepared emotionally.
What Past Market Declines Can Teach Us
Don't Lose Perspective (Lecture 5) - Commentary
BGFN, The Benjamin Graham Financial Network! - Commentary
Books to Read about Stocks - Commentary (Same as Chapter 1)

Rewards of keeping a long-term perspective
96-Year-Old Secretary Quietly Amasses a Fortune Stocks can make you rich, Dear Students ... but it takes time
Woman buys 3 shares of Abbott Labs at age 26 When she dies at 100, she leaves $7 million to her favorite college

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

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" 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 iTunes
Scroll to individual presentations    (iTunes does not allow direct links to the presentations.)

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 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 sessions with Tuesday/Thursday Face-to-Face Class Audio/Visual (BUS-123-01)
TueThur Lecture 1 using Zoom -- 2 Mar   Introduction to Stocks, Historical Returns, Pros and Cons, The Stock Markets - Passcode: 2KV7w@w?
TueThur Lecture 2 using Zoom -- 4 Mar   Casas de Cambio, Stock Transactions, Dow Jones Industrial Average - Passcode: xUgDwhd2
TueThur Lecture 3 using Zoom -- 9 Mar   Stock Indexes & Averages, Stock Characteristics including Dividends - Passcode: n1n6gH4P
TueThur Lecture 4 using Zoom -- 11 Mar   Stock Types, Capitalization, Stock Investing Strategies, Worksheets 1 & 2 - Passcode: b9v0FpE0

Chapter 6:
Common
Stock
Valuations


Chapter 6 Materials
Presentation file
Study Guide
Chapter 6 Assignment - Commentary
Chapter 6 Semi-Bonus Assignment - Commentary
   Semi-Bonus Assignment Spreadsheet -- Nike
   Presentation: Video - Video (CC) - Audio
The Value Line   The Value Line is available at selected libraries but the libraries are closed. We can view the thirty stocks of the Dow Jones Industrial Average for free at the valueline.com
Newport Beach Public Library   Aha! We can get The Value Line and Morningstar for free at the Newport Beach Public Library.
   Presentation: Video - Video (CC) - Audio

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 - Commentary - 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 57    Discounted Cash Flow Model, 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 34    Dividend Discount Models
Chapter 6 - Lecture 3 - Slides 35 to 57    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 57    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 57    Discounted Cash Flow Model, The Value Line

Online sessions with Tuesday/Thursday Face-to-Face Class Audio/Visual (BUS-123-01)
TueThur Lecture 1 using Zoom -- 16 Mar    Introduction to Valuation Techniques, Price Ratio Models, Worksheet #1, Start Dividend Discount Models - Passcode: RgAfdJ5b
TueThur Lecture 2 using Zoom -- 18 Mar    Dividend Discount Models, Discounted Cash Flow Model, The Value Line - Passcode: q#U%ZNk7
TueThur Lecture 3 using Zoom -- 23 Mar    Review, Worksheet #2 - Passcode: D3kmDZ2e
TueThur Lecture 4 using Zoom -- 25 Mar    Review for Exam #2, Semi-Bonus Assignment - Passcode: Sf^e3iZ^

Chapter 17:
Financial
Statements
and
Ratio
Analysis


Chapter 17 Materials
Presentation file
Study Guide
Financial Ratios Assignment - Commentary
Financial Ratios Formulas

Financial Statements
Sprouts: Balance Sheet - Income Statement - Cash Flow Statement  a.k.a. Statement of Cash Flows
Ford: Balance Sheet - Income Statement - 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" 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

Online sessions with Tuesday/Thursday Face-to-Face Class Audio/Visual (BUS-123-01)
TueThur Lecture 1 using Zoom -- 6 Apr    Begin Financial Statements and Ratio Analysis - Passcode: oT+MsA0i
TueThur Lecture 1 using Zoom -- 8 Apr    Finish Ratio Analysis   Lecture continues with Chapter 7 below - Passcode: ir0j6B.R

Chapter 7:
Stock Price Behavior
and Market Efficiency


Chapter 7 Materials
Presentation file
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.

Market Manias/Bubbles and Crashes
What is a Bubble  Bubbles are also known as manias.
Asset Bubbles Through History: The Five Biggest  There are some historians who are claiming the the Tulip Bulb Mania was overblown.
What is a Stock Market Crash

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

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

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

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

Online sessions with Tuesday/Thursday Face-to-Face Class Audio/Visual (BUS-123-01)
TueThur Lecture 1 using Zoom -- 8 Apr    Stock Price Behavior and Market Efficiency   Lecture continues from Chapter 17 above - Passcode: ir0j6B.R

Chapter 8:
Behavioral Finance
and the Psychology
of Investing


Chapter 8 Materials
Presentation file
Study Guide
Optional Bonus Assignment - Commentary
  Technical Analysis Presentation: Video - 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!

Please stay long-term oriented with high-quality investments
$15,500 to $1,000,000 to $7,000    Oh, well. It was nice while it lasted.
Don't Panic!    Yet another example of investors selling at the bottom.

"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 - 1997   Watch for the couple from New York who put everything into AMLN. Starts around 27 minutes.
  AMLN - Amylin Pharmaceuticals   The next year, AMLN quickly lost over 95% of its value.

Series 7 Stockbroker Exam Specifications  FINRA (Financial Industry Regulatory Authority)
Securities Industry Essentials: New Exam Coming!  FINRA wants to make it easier for you to enter the industry
Securities Industry Essentials: It's Here!  The SIE, Securities Industry Essentials, exam is now available
Securities Industry Essentials: Content Outline  Here is the content outline -- much of what it is in BUS-123, Introduction to Investments!
Securities Industry Essentials: Practice Exam  Cool! FINRA is offering a free practice exam. (Notice they showcase a woman on the webpage!

Online Audio Lectures
Chapter 8 - Lecture 1 - Slides 1 to 29    Behavioral Finance and the Psychology of Investing; Technical Analysis

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

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

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


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

Chapter 9:
Introduction to Bonds


Chapter 9 Materials
Presentation file
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   Also includes a bond yield curve that we discuss in chapter 10.
  Presentation: Video - Video (CC) - Audio

Composite Rates
Composite Bonds Rates from Fidelity   Can be used for question #4 of assignment.
Bond Rates from Wall Street Journal    Also shows yield curve which we discuss in chapter 10.
Federal Reserve Bank of St. Louis Bond Research Web Site    Great resource for researching about bonds in aggregate (but no individual bond quotes).

Who and what are Fannie Mae and Freddie Mac and what should we do about them?
First, what are Mortgage Backed Securities?    SEC's Investor.gov describes Mortgage Backed Securities, the lifeblood of the mortgage industry.
Forbes gives a good description of them    But does not go into the challenges of what to do with them.
Investopedia's description of both    But again sidesteps the question of where do we go from here.
Bloomberg asks the tough questions    Here is an explanation of how they currently are working and an incremental change that may or may not help.

Bond Quote Examples
Ford: Mar 09 - Oct 09 - Jun 10 - Oct 10 - Mar 13 - Oct 14 - Oct 17 - Apr 18 - Oct 18 - Apr 19 - Apr 20 - Oct 20 - Apr 21
   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 18 - Apr 19 - Apr 20 - Oct 20 - Apr 21
   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 42   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 42   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 42   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 42   Types of Bonds, Bond Ratings

Chapter 10:
Bond Yields, Valuation,
and Prices


Chapter 10 Materials
Presentation file
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
Understanding Treasury Yield and Interest Rates   Investopedia's description of the yield curve
Yield Curve from GuruFocus.com   Also shows historical 10-year to 1-year spreads on Treasury Notes
Composite Bonds Rates from Fidelity   Useful for chapter 9 assignment
Animated Yield Curve   30 Years of Data -- Very Cool!
NPR's take on the Inverted Yield Curve   Must click on [Listen]

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

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


Chapter 18 Materials
Presentation file   Please see three questions on exam #4 below.
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" 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 file
Study Guide
Assignment - Commentary

Bonds in Retirement  versus  Stocks in Retirement  versus  Stocks and Bonds in Retirement  versus  Balanced in Retirement
  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

The Standard and Poors 500 Index Revisited
The S&P 500 versus the S&P 50?    Is the S&P 500 really a broadly-based, well-diversified index when 56% of the return comes from 50 companies?

Text Book

Here are links to sellers of the 9th, 8th, 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.
Except for the data being updated, there are not many differences between the 4th, 5th, 6th, 7th, 8th 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
Please listen to the syllabus commentary about the textbook. (Hint, hint. Wink, wink. Nudge, nudge.)
9th Edition -- This is the "official" book of the Spring 2021 class
Amazon: https://www.amazon.com/Fundamentals-Investments-Management-Bradford-Jordan
eBay.com: Various editions available on eBay
Chegg.com: Seems they only have up to edition #8 on Chegg
8th Edition -- Very similar to the current edition (but cheaper)
Amazon: https://www.amazon.com/Fundamentals-Investments-Management-Bradford-Jordan/dp/1259720691/ref=dp_ob_title_bk
eBay.com: Various editions available on eBay
Chegg.com: Seems they only have up to edition #8 on Chegg.com
7th Edition -- Very similar to the current edition (but even cheaper)
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
eBay.com: Various editions available on eBay
Chegg.com: http://www.chegg.com/textbooks/fundamentals-of-investments-7th-edition-9780077861636-0077861639?trackid=67a86a11&strackid=6c290340&ii=5
6th Edition -- Also very similar to the current edition (but even more cheaper)
Amazon: http://www.amazon.com/Fundamentals-Investments-Stock-Trak-Mcgraw-Hill-Insurance/dp/0077457641/ref=dp_ob_title_bk
eBay.com: Various editions available on eBay
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 -- Again, very similar to the current edition (but really, really more 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
eBay.com: Various editions available on eBay
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 -- You guessed it! Very similar to the current edition (but probably the cheapest)
Amazon: http://www.amazon.com/Fundamentals-Investments-McGraw-Hill-Finance-Insurance/dp/0073027219/ref=sr_11_1?ie=UTF8&qid=1199133503&sr=11-1
eBay.com: Various editions available on eBay

Back