lecture 3

lecture 3 - Lecture 3 Overview of asset classes Prof Irvine...

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Prof Irvine FINA 4310 Lecture 3 Overview of asset classes
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Prof Irvine FINA 4310 Takeaways How are short-term bonds quoted and priced? What are the other major asset classes we will cover this term? How do securities trade?
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Prof Irvine FINA 4310 Stocktrak Stocktrak Portfolio Form a Stocktrak portfolio that meets the following criteria: You have $500,000 to invest Benchmark portfolio I (Flying Biscuit): Bogey Fully invested 10-15 stocks (NYSE and Nasdaq-Amex) Will not change composition Your portfolio begins trading on September 13 ends nov 20th Your initial portfolio must Contain at least 5 stocks, 25 maximum Your initial portfolio must contain at least $250,000 in stock $250,000 is the largest cash position you can begin with Stocktrak limits the largest position you can begin/maintain in a single security 100 trade maximum, others cost you $$$ Trades must pay commission Margin is not yet permitted Check the Stocktrak website for trading rules Other assets are permitted, but positions may be limited by Stocktrak No day trading is allowed Initial portfolio starts September 13 Initial portfolio set Market close Monday September 20.
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Prof Irvine FINA 4310 Your Stocktrak competition
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Prof Irvine FINA 4310 Major Classes of Financial Assets or Securities That you can invest in for Stocktra k Debt Money market instruments Bonds Common stock Preferred stock Derivative securities
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Prof Irvine FINA 4310 Terminology: Markets and Instruments in the short term Money Market Money Market Debt Instruments Derivatives Capital Market Bonds Equity Derivatives
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Prof Irvine FINA 4310 Money Market Instruments Treasury bills Certificates of deposit Commercial Paper Bankers Acceptances Eurodollars and LIBOR Repurchase Agreements (RPs) and Reverse RPs Commercial Paper
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MMMF and the Credit Crisis of 2008 Between 2005 and 2008 money market mutual funds (MMMFs) grew by 88%. Why? MMMFs had their own crisis in 2008 when Lehman
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This note was uploaded on 06/05/2011 for the course FINA 4310 taught by Professor Staff during the Fall '08 term at UGA.

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lecture 3 - Lecture 3 Overview of asset classes Prof Irvine...

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