{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Chpt three - SECURITYTYPES ChapterThree: Interestbearing...

Info iconThis preview shows pages 1–10. Sign up to view the full content.

View Full Document Right Arrow Icon
 4/12/11 SECURITY TYPES……………..
Background image of page 1

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

View Full Document Right Arrow Icon
 4/12/11 Chapter Three: Overview of Security Types Interest-bearing              Money Market Instruments              Fixed-Income Equities              Common Stock              Preferred Stock
Background image of page 2
 4/12/11 Money Market Instruments AKA….”CASH” Short-term IOUs sold by Banks, Corporations, and  Government. Generally under 1 year in maturity. Some Money Market Instruments: Treasury Bills Certificates of Deposit (CDs) Commercial Paper
Background image of page 3

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

View Full Document Right Arrow Icon
 4/12/11 Money Market Yields ........ Discount  Yield: (T-Bills) Add-on Yield: (CDs)
Background image of page 4
 4/12/11 Fixed Income Securities: Notes…             One to Ten Year Maturity Bonds              Greater than Ten Year Maturity Securities that promise fixed payments (coupon  interest; semi-annual plus face value at maturity)
Background image of page 5

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

View Full Document Right Arrow Icon
 4/12/11 Fixed Income Security Types: U.S. Treasuries (Notes & Bonds) Corporates Municipals Agencies (Fannie, Freddie, Sallie)
Background image of page 6
 4/12/11 Fixed Income Price Quotes: Issuer Name    Symbol  Coupon  Maturity  Rating     High    Low      Last     Change  Yield Goldman Sac  GS.WL  5.625%  Jan2017  A1/A+  97.615 94.141  94.691    -0.789    6.382 So  if you purchased a bond with $1000 face value per bond, your cost would be  $946.91. You would receive semi-annual coupon payments of  $28.1250 (twice per year so  $56.25 per annum). Remember, price moves in the opposite direction of yield, so as prices rise,  yields fall…and as prices decline, yields rise.
Background image of page 7

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

View Full Document Right Arrow Icon
 4/12/11 EQUITIES….. Common Stock…ownership in a corporation  through shares of stock. Two Advantages:              Cash Dividends              Price Appreciation (Hopefully) Market Capitalization= # of shares outstanding X share 
Background image of page 8
 4/12/11 Common Stock: Some Key  Considerations Float: The total number of tradable shares. Volume: The number of Shares traded in a given  day. P/E Ratio: (Also known as a stock’s “Multiple”) …..Stock Price/Earnings Short Interest: Number of shares that have been  “shorted” and remain open positions.
Background image of page 9

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

View Full Document Right Arrow Icon
Image of page 10
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}