BASIC INVESTMENT INFORMATION

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BASIC INVESTMENT INFORMATION
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Investment information

• key concepts
• stock quotations
• investment information resources

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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)

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Stocks

• an equity instrument
• common, preferred
• primary market stock underwriters
• secondary market
• stock exchanges (NYSE, AMEX)
• over-the-counter (NASDAQ network)

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Bonds

• a debt instrument
• corporate, agency, municipal
• coupon rate of interest

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Sources of financial quotations

• Printed resources
• WSJ, Investors Daily, Barron's
• Electronic quote systems ticker services
• Online databases e.g., CompuServe, Dialog, DJ
  News Retrieval
• Retrospective Daily Stock Price Record (SP)

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Key market indicators

• stock indexes (Dow Jones Industrial Average, SP
  500)
• earnings per share
• price/earning ratio
• book value
• price volatility
• bond ratings

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Useful resources

• Value Line Investment Survey
• Moodys Handbook of Common Stocks
• Standard NYSE Stock Reports
• S P Security Owners Stock Guide

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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