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Explore investment concepts, analysis, and strategies in this course. Learn about different types of investors and securities markets, understand the nature of investment decisions, and discover the benefits of both passive and active investment approaches. Start your journey towards financial growth now!
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Introduction to Investments Investment: Sacrifice in value today in anticipation of higher future value Investment in real assets vs financial assets Three broad areas covered in the course: - Investment concepts risk, definition & measurement, management pricing of securities predictability of future prices -Investment analysis debt securities, equity securities, derivatives -Investment strategy Portfolio management issues
Types of investors: -Individual investors -Institutional Investors -Pension Funds -Foundations -Mutual Funds Types of securities markets: -Primary Market -Secondary Market -Spot Market -Futures Markets -Money Markets -Capital Markets
Why Save? -Consumption Smoothing -Speculative Opportunities Why do securities markets exist? -Wealth of society is increased -Consumption & investment flexibility is increased Primary market benefits; secondary market benefits The Nature of Investment decisions: -Speculative strategies: to what extent? Timing and selection -Asset allocation -Security selection
Why be passive? -costs of active investment -less diversification -active investments may not work Why be active? -tax management issues -nature of the investment