Ch01-Intro to Mkts-Edited Version-Salaar

Ch01-Intro to Mkts-Edited Version-Salaar - Salaar - Finance...

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Salaar - Finance INVESTMENTS INVESTMENTS BSc SUMMER Semester 2010 Lahore School of Economics Salaar  farooq   –  Assistant Professor
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Salaar - Finance Introduction to Investments
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Salaar - Finance Finance involves Future time. Τ= 0 Τ= Future Decision Expected Outcome 1,2…n (return) RISK of deviation UNCERTAINTY Risk Calculation is on Historical Data T=0 T=-n IMPORTANT POINT TO NOTE!
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Salaar - Finance Chapter 1  Understanding Investments Learning Objectives What is Investments? Why study? What is the terminology? What is the investment environment? What is the Investment decision process? What are important considerations?
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Salaar - Finance Overview of Finance What is it?   4 BASIC AREAS IN FINANCE Corporate Finance Investments Financial Institutions International Finance
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Salaar - Finance Corporate Finance Deals with projects Answers 3 main questions ?
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Salaar - Finance Corporate Finance Deals with projects Answers 3 main questions : What long-term projects are appropriate to invest in? What is the best way to finance these projects? e.g. Borrow money OR dilute ownership How project’s financial activities will be managed? e.g. collecting from customers OR paying suppliers
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Salaar - Finance What is investments?   Investments Deals with Financial Assets Answers 3 main questions ?
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Salaar - Finance What is investments?   Investments Deals with Financial Assets Answers 3 main questions : What determines price of a financial asset? e.g. What is the value of a share of stock or Bond? e.g. is the return on investment reasonable given its risk? What combination of different assets should be held? e.g. what to buy or sell, how much & when?
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Salaar - Finance What is investments?   Investments Deals with Financial Assets Covers 3 main profession areas Financial Advisors/Stockbrokers Portfolio Managers e.g. professional money managers for individuals or corps Security Analyst e.g. researches & evaluates individual investments in depth
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Salaar - Finance Financial Institutions Deals with Financial Matters Covers a wide range of financial activities Banks e.g. deals with loans, customer deposits, etc Insurance Companies e.g. receives premiums & invests money
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Salaar - Finance International Finance Global Deals with same areas from an international perspective Corp finance Investments Financial Institutions
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Salaar - Finance SAVERS Investors USERS Corporations Capital Markets $$ Markets Overview Basic
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Salaar - Finance SAVERS Investors USERS Corporations Capital Markets $$ Finance Overview Depository Institutions Investments Corporate Finance $$ $$ Primary Markets
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Salaar - Finance
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Salaar - Finance   What are major types of Financial Assets?   ORGANIZATION
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Ch01-Intro to Mkts-Edited Version-Salaar - Salaar - Finance...

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