This text examines the fundamentals of investing, including basic concepts, specific investment vehicles, online investment, portfolio applications, and the topic of derivative securities. This edition also includes links and web exercises, focusing on the global aspects of investing. Sample questions from the CFA (professional) exam are included at the end of each part division.



Table of Contents



I. THE INVESTMENT ENVIRONMENT.

1. The Role and Scope of Investments.

2. Investment Markets and Transactions.

3. Investment Planning and Information.

4. Investment Return and Risk.

II. INVESTING IN COMMON STOCK.

5. Common Stock Investments.

6. Analytical Dimensions of Stock Selection.

7. Stock Valuation and Investment Decisions.

III. INVESTING IN FIXED-INCOME SECURITIES.

8. Bond Investments.

9. Bond Valuation and Analysis.

10. Preferred Stock and Convertible Securities.

IV. DERIVATIVE SECURITIES.

11. Options: Puts, Calls, and Warrants.

12. Commodities and Financial Futures.

V. OTHER POPULAR INVESTMENT VEHICLES.

13. Mutual Funds: An Indirect Route to the Market.

14. Real Estate and Other Tangible Investments.

15. Tax-Advantaged Investments.

VI. INVESTMENT ADMINISTRATION.

16. Portfolio Construction.

17. Portfolio Management and Control.