IFM10 Ch01 WebExt 1C

IFM10 Ch01 WebExt 1C - Chapter1 WebExtension1C...

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  1 Chapter 1 Web Extension 1C A Closer Look at the Stock  Markets  
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  2 Topics in Web Extension Stock indexes Regulation Overview of investment banking Stock trading
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  3 Stock Indexes  Stock indexes try to measure some  aspect of the market The differ with respect to: Composition (types of stock in the index) Weighting (how the individual stocks are  aggregated into an index) (More . .)
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  4 Index Composition  Replicate a particular exchange Measure a country’s most important  stocks Measure a particular business sector Measure a particular investment “style” Measure an international region (More . .)
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  5 Composition by Exchange NYSE Composite Nasdaq Composite (More . .)
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  6 Composition by Business  Sector  Many different index providers, such as: Dow Jones Amex Morgan Stanley Many different sectors, such as: Airlines Biotechnology Chemicals Consumer retailers Technology 
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  7 Composition by “Style”  Two important investment styles are by the  size of the firm and by its growth prospects.   Growth is measure by high-expected sales  growth and high price-book ratios (value  stocks have lower growth and lower price- book ratios)  Examples: Russell 1000 Growth Russell Midcap Value
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IFM10 Ch01 WebExt 1C - Chapter1 WebExtension1C...

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