Lecture Notes 2B - Financial Environment

Lecture Notes 2B - Financial Environment - Chapter 2:...

Info iconThis preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 2: Financial Markets and Instruments Chapter 2 objectives Identify different financial instruments Learn preliminaries of their risk-return Learn to read data from the Wall Street Journal Understand the construction of stock indexes
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Common Stock Characteristics of common stock Represents ownership claims Voting/managing rights Participate in residual risk and return Limited liability No maturity Over the long run has outperformed money-market and fixed-income securities
Background image of page 2
Preferred Stock Characteristics of preferred stock: Fixed income investment No maturity Usually cumulative Senior claim to common stock Hybrid security (has features of stock and bond) No voting rights May be convertible Preferred by corporations
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Indexes Stock indexes DJIA Price weighted Value weighted NYSE Value weighted AMEX Value weighted NASDAQ Value weighted Wilshire 5000 Value weighted CRSP VW Value weighted CRSP EW Equally weighted
Background image of page 4
Image of page 5
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 13

Lecture Notes 2B - Financial Environment - Chapter 2:...

This preview shows document pages 1 - 5. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online