Chap003 - Chapter 3 Security Types Slides 3-1 3-2 3-3 3-4...

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Chapter 3 Security Types Slides 3-1 Fundamentals of Investments 3-2 Security Types 3-3 Classifying Securities 3-4 Interest-Bearing Assets 3-5 Money Market Instruments 3-6 Fixed-Income Securities 3-7 Quote Example: Fixed-Income Securities 3-8 Quote Example: Fixed-Income Securities 3-9 Equities 3-10 Common Stock 3-11 Common Stock Price Quotes 3-12 Preferred Stock 3-13 Derivatives 3-14 Derivatives 3-15 Futures Contracts 3-16 Futures Contracts: Price Quotes 3-17 Option Contracts, I. 3-18 Option Contracts, II. 3-19 Option Contracts, III. 3-20 Option Contracts: Price Quotes 3-21 Investing in Stocks versus Options, I. 3-22 Investing in Stocks versus Options, II. 3-23 Useful Internet Sites 3-24 Chapter Review, I. 3-25 Chapter Review, II.
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A-22 Chapter 3 Chapter Organization 3.1 Classifying Securities 3.2 Interest-Bearing Assets A. Money Market Instruments B. Fixed Income Securities 3.3 Equities A. Common Stock B. Preferred Stock C. Common Stock Price Quotes 3.4 Derivatives A. Futures Contracts B. Futures Price Quotes C. Gains and Losses on Futures Contracts 3.5 Option Contracts A. Option Terminology B. Options versus Futures C. Option Price Quotes D. Gains and Losses on Option Contracts E. Investing in Stocks versus Options 3.6 Summary and Conclusions Selected Web Sites www.investinginbonds.com (reference for bond basics) www.fool.com (reference to see whether you are a “Foolish investor.”) www.stocktickercompany.com (reference for reproduction stock tickers.) www.cnbc.com (reference for CNBC TV) www.cbot.com (Chicago Board of Trade) www.cme.com (Chicago Mercantile Exchange) www.nymex.com (New York Mercantile Exchange) www.cboe.com (Chicago Board Options Exchange)
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Security Types A-23 Annotated Chapter Outline 3.1 Classifying Securities This chapter provides an introduction to the different types of securities. In general, three questions are asked: What is the security's basic nature and its distinguishing characteristics? What are the potential gains and losses? How are prices quoted? The three basic types of financial assets are: interest-bearing, equities, and derivatives. Some securities are hybrids—they are combinations of the basic types of securities. Financial assets are also referred to as securities and financial instruments. 3.2 Interest-Bearing Assets Interest bearing assets : value of the asset depends on interest rates. All of these assets depend on interest rates; they are a type of loan, and they are all debt obligations. There are many types of interest-bearing assets, and they range from the simple to the very complex. A. Money Market Instruments Money market instruments : short-term obligations of corporations and governments that mature in one year or less. Treasury Bills
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Chap003 - Chapter 3 Security Types Slides 3-1 3-2 3-3 3-4...

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