basic investment information. investment information key concepts stock quotations investment...

BASIC INVESTMENT INFORMATION

Investment information

• key concepts

• stock quotations

• investment information resources

Investment terminology

• SECURITY: a financial instrument that is a claim on an asset and could be traded on the market

• STOCK: a certificate of share ownership in a corporation (equity instrument)

• BOND: a security that involves loan to be repaid (debt instrument)

Stocks

• an equity instrument

• common, preferred

• primary market: stock underwriters

• secondary market:– stock exchanges (NYSE, AMEX)– over-the-counter (NASDAQ network)

Bonds

• a debt instrument

• corporate, agency, municipal

• “coupon rate” of interest

Sources of financial quotations

• Printed resources:– WSJ, Investor’s Daily, Barron's

• Electronic quote systems: ticker services

• Online databases: e.g., CompuServe, Dialog, DJ News Retrieval

• Retrospective: Daily Stock Price Record (S&P)

Key market indicators

• stock indexes (Dow Jones Industrial Average, S&P 500)

• earnings per share

• price/earning ratio

• book value

• price volatility

• bond ratings

Useful resources

• Value Line Investment Survey

• Moody’s Handbook of Common Stocks

• Standard NYSE Stock Reports

• S & P Security Owners Stock Guide

Useful Internet links

• Etrade.com http://www.etrade.com/• Data Broadcasting Corporation - real time

stocks

http://www.dbc.com/

• Hoovers Info Service http://www.hoovers.com

• SEC http://www.sec.gov