An investment is the commitment of current money or other resources in the expectation of reaping future benefits . 1 What is an Investment?
If you have ￥ 10000 or more to invest, how should you invest? 2 Where to Invest?
Overview of the course Equity Analysis Portfolio Theory Debt Securities Option Derivative s Why study investments? Be a smart investor! 3
Chapter 1 The Investment Environment 4
Types of investments: ◦ Real assets ◦ Financial assets Equity Debt Derivatives Process of investments: ◦ Asset allocation vs. security selection ◦ Top-down vs. bottom-up strategies ◦ Risk-return trade-of Environment of investments: ◦ Overview of security markets and players 5 Outline of Chapter 1 Invest ments
Real Assets • Used to produce goods and services • Examples: Property, plant & equipment, human capital, etc. Financial Assets • Claims on real assets or claims on asset income • Examples: stocks, bonds, and derivatives 6 1.1 Two Types of Assets
7 Share prices of Apple Inc. (AAPL)
- Spring '09