In this class I lecture and assign reading by modules, rather than week-by-week. This gives you some leeway in developing a reading schedule. It is very important that you try to keep up with the reading - background material is very important in this class. Try to pace yourself through this material. Because I try to use reading material that is very topical, including some material that I write and update every semester, links to the reading material assigned to each module are only made available just before the module begins. That is why at the beginning of the semester there are some dark links on this page. Although I will remind you, try to get into the habit of looking at the links on this page when we start a new module.
Homework assignments are typically not collected nor graded, but we will be
discussing them on the dates that they are due. Additionally,
keep all copies of these homework assignments. You may be required to use them on an examination.
Module 1 - Introduction to Equities
September 4 (Tu) – September 11 (Tu) : 3 sessions
Introduction to class. Discussion of general investment objectives, strategies, and tactics. NYSE, NASDAQ stocks, reading the quotes, indices, exchanges.
Module 2 – Equity Performance
September 13 (Th) – September 20 (Th) : 3 sessions
History of the stock market, leverage, classes of stock, electronic trading, some selection and trading strategies
Module 3 – Mutual Funds, ETFs, and other exchange traded products
September 25 (Tu) - October 2 (Tu) : 3 sessions
Mutual funds and classifications, fees, performance issues, index funds, portfolio strategies, quotations, online management, exchange traded funds (how they work, classification, as substitutes for mutual funds).
First Examination - Thursday, October 4
Module 4 - Put and Call Options (with a reading segment about retirement accounts)
October 9 (Tu) – October 16 (Tu) : 3 sessions
Put and Call Options, trading strategies, writing covered calls, Aruba Options model.
Module 5 - Yield-Bearing Financial Assets (YBFAs)
October 18 (Th ) - November 6 (Tu) : 5 sessions (Fall break, October 23, is during this period)
U.S. Treasury markets, reading the quotes. Bond values and interest rates, indexing formulas, bond mutual funds, corporate YBFAs, strips, zero-coupons, mortgage-backed markets, munis, money market FAs, repos, derivatives, money market funds. CDOs, ABCPs and the credit meltdown of 2007/2008, the remedies since 2009.
Second Examination - Thursday, November 8th
Module 6 – Futures Contracts
November 13 (Tu) – November 20 (Tu) : 3 sessions
Futures contracts and related derivatives. Hedging strategies. Speculation with futures and arbitrage with futures and other financial assets.
Module 7 - Real Estate
November 27 (Th) – December 4 (Tu) : 3 sessions (Thanksgiving is during this period)
Real estate financing, market theory, leverage and dangers of leverage, connection to mortgage pass-thru market, home selection, tax issues, escrow, fees, housing ...
Module 8 – Investment Strategy and Review
December 6 (Th) – December 11 (Tu) : 2 sessions
A general discussion of mid-term to long-term investment strategies. Portfolios, diversification, mixed investments, investment goals, avoiding disasters.
There are no reading or homework assignments for this section.
In-class portion of Final Examination - Thursday, December 13th at
class time and take-home final distributed on the same day.
Take-home final due Wednesday, December 19 noon at Parsons 1261 (sorry, no email submissions).