J.C Penny Company, INC (NYSE:JCP)
Brief Company Background
JCP is a department store founded in 1902 that sells
merchandise and services to its customers directly and
through the onl
Chapter 7EMH- They hypothesis stating that, as practical matter, investors cannot consistently "beat the
Excess Return- A return in excess of that earned by other investments having the same risk.
Random Walk- No discernible pattern to the path t
Private equity- Financing non public companies.
Venture Capital- Financing for new, often high-risk ventures.
Middle Market- financing ongoing concern companies (non-startups).
LBO- loading a debt in order to buyout a company.
Primary market- Th
* Money Market Instruments- Debt obligations of large corporations and governments
with an original maturity of one year or less.
*Fixed income securities- Long term debt obligations, often of corporations and
governments, that promise to make f
Mutual fund- Pros
Cons- Diversification, Professional Management, Minimum initial investment
Drawbacks- Risk, costs, taxes
MF Expenses and fees
Loads- Sales commission for Broker
A- paid up front (% Added to fund)
B- Paid upon Sa
Chapter 2 The Investment Process
Objectives- Risk and Return
Strategy and Policies
Tactical asset allocation- Can be considered to be a form of timing
Rough vs Traditional IRA High income prefers to postpone the tax, while low income
prefers to pay
Chapter 1 Risk& Return
Dividend yield- the annual return divided by the initial stock price.
Capital gain yield- change in price divided by the initial price.
There are two ways to look at return, it can be measured either in nominal $ value or it