The Forbes / CFA Institute Investment Course

The most up-to-date and all encompassing guide to investing in today's marketsFrom Forbes and the CFA Institute-two of the most highly respected and recognized names in the investment industry-The Forbes/CFA Institute Investment Course is an interactive roadmap to investing in today's challenging stock markets. From building capital and asset allocation and diversification to choosing a broker and reading a financial statement, The Forbes/CFA Institute Investment Course has offered investors step-by-step guidance since 1948. The course Includes advice for novices, but also accommodates those who are more familiar with markets Provides important information on fundamental analysis versus technical analysis Details different asset classes: fixed income securities, derivatives, mutual funds, and equitiesWith Q&A, links to videos, expert advice, interviews with top money managers, and much more, The Forbes/CFAInstitute Investment Course is the perfect resource for anyone looking to learn about investing in today's markets.

VAHAN JANJIGIAN is Chief Investment Officer at Greenwich Wealth Management, LLC, a SEC registered investment advisor. He is a Forbes magazine columnist and Editor of the Forbes Special Situation Survey, widely regarded as one of the best performing investment newsletters. He previously served on the faculties of several leading universities. He is a frequent guest on popular television and radio business programs and is the author of Even Buffett Isn't Perfect.

STEPHEN M. HORAN is the head of professional educational content for CFA Institute and specializes in private wealth management. Prior to joining CFA Institute, he was a professor of finance at St. Bonaventure University, principal of Alesco Advisors LLC, and a financial analyst and forensic economist in private practice. He is editor of Private Wealth: Wealth Management in Practice and the author of numerous articles in leading peer-reviewed journals. Dr. Horan isa frequent columnist in the Financial Times.

CHARLES TRZCINKA is the James W. & Virginia E. Cozad Chair in Finance at the Kelley School of Business, Indiana University, Bloomington. Previouspositions have included the faculties of SUNY Buffalo and New York University; director of the U.S. Commerce Department's MBA program in the People's Republic of China; and senior economist with the United States Securities and Exchange Commission.

Introduction
Acknowledgments
Building Capital
The Role of the Stock Market in Building Wealth
Determining Your Financial Position
Your Financial Inventory Guide
Personal Balance Sheet Example
Investment Margin
Defining Your Goals
Return Requirements
Risk Profile
Life Cycle and the Risk/Return Mix
Other Considerations
Asset Classes
Asset Allocation
An Example of Asset Allocation
Active versus Passive Investing
Diversification
Dollar Cost Averaging
How Dollar Cost Averaging Works
Ideal Investments for Dollar Cost Averaging
Chapter 1: Takeaways
How Securities Markets function
The Role of Securities Markets
The Securities Exchanges
Over-The-Counter Markets
NASDAQ
ECNs
Stock Quotes
The Third Market
Other Markets
How the NYSE Operates
How NASDAQ Operates
From SOES to SuperMontage
OTC Bulletin Board and Pink Sheets
How the ECNs Operate
Crossing Systems
Electronic versus Floor Trading
Preferencing
Internalization
Chapter 2: Takeaways
Selecting a Broker and Trading
Structure of a Brokerage Firm
Activities of a Brokerage Firm
Services Offered by all Brokers
Full-service versus Discount Brokers
Online Brokers
Choosing a Brokerage Firm
Commissions
Direct Purchase of Securities
Placing Orders
Odd-lot Trading
Margin
Transaction Example
Settlement
Stock Symbols and the Ticker Tape
Questions to Ask Your Broker
Chapter 3: Takeaways
Tax-favored Investment Strategies
Capital Gains and Dividends
Traditional IRAs
Roth IRAs
401(k) Plans
Education Savings Accounts and 529 Plans
Other Pension Plans
Mutual Funds and Taxes
Using Tax-advantaged Accounts
Chapter 4: Takeaways
Reading Financial Statements
Income Statements
Balance Sheet
Making Sense of the Numbers
Profitability Ratios
Asset Utilization Ratios
Leverage Ratios
Revisiting ROE
Liquidity Ratios
Market Multiples
Look Beyond the Numbers
Read the Footnotes
Can You Trust Financial Statements?
Chapter 5: Takeaways
Sources for Investment Information
Where to Obtain Information
Securities and Exchange Commission
Earnings Releases and Regulation Fair Disclosure
Investment Brokers and Dealers
Can You Trust Brokerage House Reports?
Investment Newsletters and Other Publications
Corporate Reports
Reading the Annual Report
Government Reports
Chapter 6: Takeaways
Common Stocks and Economic Indicators
Another Look at the Balance Sheet
Why Common Shares Have Value
Macroeconomic Factors
Industry Specific Factors
Other Barometers
Evaluating Data
Chapter 7: Takeaways
Fundamental Analysis
Investing Versus Trading
Passive Investing
Active Investing
Business Focus
Industry Outlook
Company Status
Major Trends
Earnings History and Outlook
Dividends
Price-Earnings and Price-Book Ratios Revisited
Discounted Cash Flow
Evaluating Management
Some Final Thoughts on fundamental Analysis
Chapter 8: Takeaways
Technical Analysis
The Value of Charts
Reading Charts
Dow Theory
Head and Shoulders
Support and Resistance Levels
Trading Ranges
Break-away Gaps
The Importance of Volume
Other Technical Indicators
Time to Grow Bullish
Chapter 9: Takeaways
Fixed- Income Securities
Bonds
Understanding Bonds
Understanding Bond Prices
Bond Prices and Interest Rates
Call Feature
Credit Quality of Bonds
Other Issues Concerning Bonds
How to Buy Bonds
Money-market Securities
Preferred Stock
Understanding Preferred Stock
Tax Treatment
Trust Preferred Securities
Final Thoughts on Bonds and Preferred Stocks
Chapter 10: Takeaways
Derivatives
Defining Derivative Instruments
Futures
Spot Asset
The Future's Market
Delivery
Hedging
Stock Index Futures
Single Stock Futures
Options
Definition of Options
Options Markets
Important Terms to Know
Listed Options
What an Option is Worth
Commissions
To Sell or to Exercise
Some Popular Option Strategies
A Warning about Naked Option Writing
Chapter 11: Takeaways
Mutual Funds
An Investment Company
Closed-end or Open-end
A Short History of the Mutual Fund Industry
Categories of Mutual Funds
Advantages of Mutual Funds
Disadvantages of Mutual Funds
Mutual Fund Expenses
How to Choose a Fund
Some Final Thoughts about Mutual Funds
Hedge Funds
Chapter 12: Takeaways
Rules of Thumb and Key Phrases
Final Comments
Suggested Readings
About the Authors
Index
Table of Contents provided by Publisher. All Rights Reserved.

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The Forbes / CFA Institute Investment Course Timeless Principles for Building Wealth

Summary

Author Biography

Table of Contents

Supplemental Materials