Type:
Solution Manual
Resource:
Fundamentals of Investing
Edition:
1st Edition
Author(s):
Scott B. Smart Chad J. Zutter Vijay K. Vishwakarma Ayse Yuce
INSTRUCTOR RESOURCE MANUAL Tov Assogbavi Laurentian University
Fundamentals of Investing Canadian Edition Scott B. Smart Indiana University
Chad J. Zutter University of Pittsburgh
Vijay K. Vishwakarma St. Francis Xavier University
Ayşe Yüce Ryerson University
Table of Contents CHAPTER 1
The Investment Environment .....................................................................
CHAPTER 2
Securities Markets and Transactions .........................................................
CHAPTER 3
Investment Information and Securities Transactions .................................
CHAPTER 4
Return and Risk..........................................................................................
CHAPTER 5
Modern Portfolio Concepts ........................................................................
CHAPTER 6
Common Stocks .........................................................................................
CHAPTER 7
Analyzing Common Stocks .......................................................................
CHAPTER 8
Stock Valuation ..........................................................................................
CHAPTER 9
Market Efficiency and Behavioural Finance .............................................
CHAPTER 10 Fixed-Income Securities ............................................................................ CHAPTER 11 Bond Valuation .......................................................................................... CHAPTER 12 Mutual Funds and Exchange-Traded Funds .............................................. CHAPTER 13 Managing Your Own Portfolio .................................................................. CHAPTER 14 Options: Puts and Calls .............................................................................. CHAPTER 15 Futures Markets and Securities ..................................................................
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Chapter 1 The Investment Environment ◼
Outline
Learning Objectives I.
Investments and the Investment Process A. Attributes of Investments 1. Securities or Property 2. Direct or Indirect 3. Debt, Equity, or Derivative Securities 4. Low- or High-Risk Investments 5. Short- or Long-Term Investments 6. Domestic or Foreign B. The Structure of the Investment Process Concepts in Review
II.
Types of Investments A. Short-Term Investments B. Common Stock C. Fixed-Income Securities 1. Bonds 2. Convertible Securities 3. Preferred Stock D. Mutual Funds E. Exchange-Traded Funds F. Hedge Funds G. Derivative Securities 1. Options 2. Futures H. Other Popular Investments Concepts in Review
III. Making Your Investment Plan A. Writing an Investment Policy Statement 1. Summarize your current situation 2. Specify your investment goals 3. Articulate your investment philosophy 4. Set investment selection guidelines 5. Assign responsibility for selecting and monitoring investments B. Considering Personal Taxes 1. Basic Sources of Taxation a. Personal Income Tax
.
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Smart/Zutter/Vishwakarma/Yüce • Fundamentals of Investing, Canadian Edition
b. Dividends c. Capital Gains and Losses 3. Investments and Taxes 4. Tax-Advantaged Retirement Savings Plans C. Investing over the Life Cycle D. Investments over the Business Cycle Concepts in Review
IV. Meeting Liquidity Needs with Short-Term Investments A. The Role of Short-Term Investments 1. Interest on Short-Term Investments 2. Risk Characteristics 3. Advantages and Disadvantages of Short-Term Investments B. Common Short-Term Investments C. Investment Suitability Concepts in Review V.
Careers in Finance A. Commercial Banking B. Corporate Finance C. Financial Planning D. Insurance E. Investment Banking F. Investment Management G. Developing Skills for Your Career 1. Critical Thinking 2. Communication and Collaboration 3. Financial Computing Skills Concepts in Review
Chapter Summary Discussion Questions Problems Case Problem 1.1
Investments or Golf?
Case Problem 1.2
Preparing Susan Bowen’s Investment Plan
StockTrak Exercise
◼ Key Concepts 1. 2.
The meaning of the term investment and the implications it has for individual investors Review the factors used to differentiate between different types of investments .