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Investments

Investments INLS 227 Spring 2005 Finance/Investment The area of business concerned with the ways in which individuals and institutions can use money to make money. This area would include things like stocks, bonds, annuities, and trusts. Types of Securities Stocks Bonds

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Investments

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  1. Investments INLS 227 Spring 2005

  2. Finance/Investment • The area of business concerned with the ways in which individuals and institutions can use money to make money. This area would include things like stocks, bonds, annuities, and trusts.

  3. Types of Securities • Stocks • Bonds • Investment Companies • (mutual funds) • Money Market

  4. Stocks • An instrument that signifies an ownership position, or equity, in a corporation, and represents a claim on its proportionate share in the corporation's assets and profits; also called equities.

  5. Bonds • A debt instrument issued for a period of more than one year with the purpose of raising capital by borrowing. The Federal government, states, cities, corporations, and many other types of institutions sell bonds. • A bond is generally a promise to repay the principal along with interest on a specified date (maturity).

  6. Investment Companies • Medium for small investors to pool resources/funds so they can participate and be represented like large investors. • Most common investment type is the MUTUAL FUND company.

  7. Money Market • Securities having less than one year maturity Treasury Bill – T-bill is a good example.

  8. Basic Investment Information Needs I need… • Stock quotations • Company’s financial information • Investment advice • Current news and industry outlook • Market Averages

  9. Types of Investment Sources I can find them in: • Stock Price Listings • Financial Data Manuals • Investment Advisory Services • News Sources • Market Averages Listings

  10. Stock Price Listings - Quotes (stocks, bonds, bills, funds) • Wall Street Journal – weekdays only • Yahoo!Finance http://finance.yahoo.com • Barron’s - weekly quotations • Daily Stock Price Record (S&P)– accumulation of daily figures/yearly publication, print only • Wall Street Research Net http://www.wsrn.com

  11. Stock/Bond/Funds Price Listings • Summary data S&P Stock Guide – Monthly S&P Bond Guide - Monthly Moody’s Bond Record - Monthly Wiesenberger Mutual Funds Update- Monthly Investment Companies Yearbook Mergent Online • Morningstar • Principia Pro - Mutual Funds 10 yr summaries • Print • Online – www.morningstar.com

  12. Financial Data Information • Annual Reports • Income statements, balance sheets, ratios, profits, stock earnings • Graphs • Charting patterns • Stock change • Change patterns

  13. Financial Manuals • Mergent Investor’s Services / Manuals • Standard & Poor’s • Hoover’s Handbooks Offers Key Financials 3-10 yrs

  14. Investment Advisory Services • Offers commentary, analysis, forecasts or recommendations

  15. Investment Advisory Services • Brokerage reports • Investext • Wall Street Transcript • “Broker Reports” • “Wall Street Roundup” • “Corporate Reports on File” • WSJ • Zack’s Investment Research

  16. Investment Advisory Services • Value Line Investment Survey • 1,700 stocks (additional 1,800 in expanded set) • Summary and Index • Selection and Opinion • Ratings and Reports • Mutual Fund Survey • Standard & Poor’s “The Outlook” stocks • Morningstar Mutual Funds

  17. Investment Advisory Services • Investment Analysis • S&P Industry Surveys • Mergent Industry Reviews • S&P Monthly Investment Review • Morningstar

  18. Market Averages • Dow Jones Industrial Averages • S&P 500 Index • Russell 1000 • Treasury Indexes • SOURCES: Wall Street Journal Standard & Poor’s Statistical Service – historical and monthly Stock, Bond, Bills and Inflation Yearbook - yearly The oldest and most widely used measures of the overall condition of the stock market, each of the four averages is price-weighted and includes a few dozen widely held stocks. There are four Dow Jones Averages: Industrial, Transportation, Utilities, and Composite (the other three together).

  19. Special Investment Situations • Follow Investment News • Quarterly reports, interim reports • Reports of changes in corporate control, acq. of sale of assets, bankruptcy, change of auditing, change in executives, activities, changes in fiscal year • New Securities Offerings -IPO’s • Look for registration statements in SEC – form, some type of “S” form -S-1 for brand new.

  20. Special Investment Situations • Merger-related Activities – M&A • LexisNexis Academic (choose Business-M&A) • Mergers and Acquisitions, IPO’s • SEC • Tracking Corporate Change • CCH Capital Changes Reports • Dividend Announcements • Moody’s Dividend Record • S&P Stock Guide, Bond Guide (see Net Advantage also)

  21. Special Investment Situations • ForeignExchange Rates • Federal Reserve • Commodities • Metals, Oil, Corn, Livestock

  22. Frequently Asked Questions About Finance/Investment “I am a beginning investor and I need to find some places where I can get some really practical advice about getting started. Tell me some places where I can get hands on tips about some of the opportunities and pitfalls of investing on my own?”

  23. Answer:Education/Online Tutorials • SEC Investor Information Guidehttp://www.sec.gov/investor.shtml • Value Line Universityhttp://www.valueline.com/vlu/index.html • Bonds Onlinehttp://www.precision-info.com/bondsonline/tl-1209392895.html • Mutual Fund Connectionhttp://www.ici.org/ • National Association of Investors Corporationhttp://www.better-investing.org

  24. “Where can I go to get a quick quote and current analysis of a particular stock?” Answer: Yahoo! Finance http://finance.yahoo.com BigCharts http://bigcharts.marketwatch.com/

  25. “Where could I go to find magazine and newspaper articles about possible investment opportunities?” Answer: ABI/INFORM DatabaseFinance and investment industry journals are extensively covered in this index. Factiva(formerly Dow Jones) This indexes online all of the Dow Jones business publications including the Wall Street Journal. Wall Street Journal

  26. “What might be some of the principal magazine, journal, and newspaper titles that would deal with finance/investment?” Answer: • Barron's National Business and Financial Weekly (Chicopee, Mass. Dow Jones& Co). • One of the most respected news magazines for the finance/investment sector. Provides weekly overviews of all domestic and foreign stock exchanges. Barron's also profiles other markets and activities like bonds, mutual funds, and commodities markets. • The Economist (London: Economist Newspaper). • One of the oldest financial publications in the world. This British weekly publication provides finance/investment news from an international perspective. • The Journal of Finance (New York: American Finance Association). • A quarterly academic publication that tackles issues in finance/investment. • The Wall Street Journal (New York: Dow Jones News Service). • The Wall Street Journal is the most respected business daily in the world. It has all the day's stock and market activity and analytical articles about trends and news on the financial scene.

  27. More…. • Better Investing • Wall Street Transcript • Money • Investor’s Business Daily • Popular newspaper

  28. “Is there something that might list a variety of sources that can be used to research the finance/investment sector?” Answer: • Business Information: How to Find it, How to Use it (Phoenix, Ariz. : Oryx Press,1992). • Encyclopedia of Business Information (Detroit: Gale Research, 1998). • Investment Statistics Locator

  29. “The world of finance/investment has all sorts of strange terms. Are their good dictionaries and handbooks that define the lingo that is used in this area of business?” Answer: • Barron's Finance & Investment Handbook • A Dictionary of Finance and Banking • International Dictionary of Finance • Wall Street Words: an Essential A to Z Guide for Today's Investor

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