TAILIEUCHUNG - Lecture Investments (Special Indian Edition): Chapter 2 - Bodie, Kane, Marcus

In this chapter, we first describe money market instruments. We then move on to debt and equity securities. We explain the structure of various stock market indexes in this chapter because market benchmark portfolios play an important role in portfolio construction and evaluation. Finally, we survey the derivative security markets for options and futures contracts. | Chapter 2 Financial Instruments Major Types of Securities Debt Money market instruments Bonds Common stock Preferred stock Derivative securities Markets and Instruments Money Market Debt Instruments Derivatives Capital Market Bonds Equity Derivatives Money Market Instruments Treasury bills Certificates of deposit Commercial Paper Bankers Acceptances Eurodollars Money Market Instruments (Cont.) Repurchase Agreements (RPs) and Reverse RPs Federal Funds Brokers’ Calls LIBOR Market Bond Markets US Treasury Bonds and Notes Agency Issues (Fed Gov) International Bonds Municipal Bonds Corporate Bonds Mortgage-Backed Securities Municipal Bond Yields Interest income on most municipals is not subject to tax To compare the yields on municipals to other bonds use equivalent taxable yield (municipal return) / (1 – tax rate) Or solve for the tax rate that equates the two yields Tax rate = 1 – (municipal rate/taxable rate) Capital Market - Equity Common stock Residual claim Limited liability Preferred stock Fixed dividends - limited Priority over common Tax treatment Stock Market Indexes Uses Track average returns Comparing performance of managers Base of derivatives Factors in constructing or using an Index Representative? Broad or narrow? How is it constructed? Examples of Indexes - Domestic Dow Jones Industrial Average (30 Stocks) Standard & Poor’s 500 Composite NASDAQ Composite NYSE Composite Wilshire 5000 Examples of Indexes - International Nikkei 225 & Nikkei 300 FTSE (Financial Times of London) Dax Region and Country Indexes EAFE Far East United Kingdom Bond Indexes Lehman Brothers Merrill Lynch Salomon Brothers Specialized Indexes Merrill Lynch Mortgage Construction of Indexes How are stocks weighted? Price weighted (DJIA) Market-value weighted (S&P500, NASDAQ) Equally weighted (Value Line Index) How returns are averaged? Arithmetic (DJIA and S&P500) Geometric (Value Line Index) Averaging Methods Component Return A=10% B= (-5%) C = 20% Arithmetic Average [.10 + () + .2] / 3 = Geometric Average [() (.95) ()]1/3 - 1 = Derivatives Securities Options Basic Positions Call (Buy) Put (Sell) Terms Exercise Price Expiration Date Assets Futures Basic Positions Long (Buy) Short (Sell) Terms Delivery Date Assets

• Quỹ đầu tư
• Lecture Investments
• Portfolio theory
• Equilibrium in capital markets
• Investment environment
• Financial instruments
• Money market
• Accounting principles
• Lecture Accounting principles
• Financial reporting
• Classifying investments
• Accounting for trading investments
• Strategic investments
• International operations
• Noninfluential investments
• Motivation for investments
• Fundamental accounting principles
• Lecture Fundamental accounting principles
• Financial accounting
• Lecture Financial accounting
• Accounting system
• Interpreting investments
• Passive investments
• Equity securities
• Investments in stock
• Survey of accounting
• Lecture Survey of accounting
• Capital investments
• Planning for capital investments
• Reinvestment assumption
• Internal rate of return
• Intermediate accounting
• Lecture Intermediate accounting
• Investments in debt securities
• Investments in equity securities
• Available for sale securities
• Debt investments
• Stock investments
• Financial statements
• Nguyên lý kế toán
• Managerial Accounting
• Lecture Managerial Accounting
• Kế toán quản trị
• Capital budgeting evaluation
• Accounting for cash
• Accounting cycle
• Business decision
• Kế toán tài chính
• Analyzing investments
• Financial information
• Financial statement analysis
• Intercorporate equity investments
• Minority passive investments
• Acquisition method
• Investment analysis
• Principles of portfolio
• Equity analysis
• Portfolio management
• Market organization
• Security market indices
• Market efficiency
• Investment management products
• Portfolio risk
• Portfolio planning
• Company analysis
• Equity valuation