1 / 15

Chapter 1 Introduction

PowerPoint Presentation Introduction to Investments Second Edition by Haim Levy Hebrew University of Jerusalem Prepared by Richard Gendreau Bemidji State University. Chapter 1 Introduction. Macroeconomic Factors Affecting Investments. Inflation Unemployment Interest Rates.

danyl
Download Presentation

Chapter 1 Introduction

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. PowerPoint PresentationIntroduction to InvestmentsSecond EditionbyHaim LevyHebrew University of JerusalemPrepared byRichard GendreauBemidji State University

  2. Chapter 1Introduction

  3. Macroeconomic FactorsAffecting Investments • Inflation • Unemployment • Interest Rates

  4. Questions To Consider • How Does the Federal Reserve Bank’s Interest Rate Policy Affect the Market? • What News is Considered Positive? • What News is Considered Negative?

  5. Globalization Of The Capital Markets • Currency Exchange Rates • Interest Rates • Federal Reserve • Exports and Imports

  6. Study Of Investments • Macroeconomics Analysis • Industry Analysis • Security Analysis • Individual firm

  7. Market Reaction To Information • Interest Rate Change • Cut rates and stock market goes up • Change must be more than expected • Quarterly Earnings and Dividends • Inflation Rate • Productivity

  8. What Is The Difference Between Corporate Finance and Investments? • Corporate Finance • Relationship between financial markets and the firm • Covers project analysis, capital structure, capital budgeting, and working capital management

  9. Differences Continued! • Investments • Relationship between investors and the financial markets • Covers security analysis, portfolio diversification, and hedging

  10. Similarities • Initial Investment • Expect Largest Possible Returns • Estimating Future Cash Flows • Discounting Future Cash Flows

  11. Primary Focus Of The Book Financial Markets • Relationship Between Investments

  12. What’s The Difference Between Investments In Real And Financial Assets? • Divisibility • Marketability • Holding Period • Information Availability

  13. Benefits Of Studying Investments • Enhancing Your Welfare • Career In Investments • Professional investor • Security analysis • Brokerage

  14. The Investment Process • Investor Characteristics • Objectives and constraints • Investment Vehicles • Efficient market? • Avoid risk • Strategy Development and Implementation • Problems • Strategy Monitoring • Goals and objectives • Review available financial assets

  15. Part 1 Investment Environment Part 2 Risk-Return Components Part 3 Security Prices And Portfolio Management Part 4 Market Efficiency Part 5 Security Analysis Part 6 Derivative Securities Brief Overview Of The Book

More Related