Financial
Markets
Lecture slides used in Fall 2012
Note: If you are a student in Economics 136, you are expected to be very familiar with all of this material, but especially those chapters and slides that have an asterisk (*) next to them.
Module 1 Introduction
to Equities
Lecture 1 Introduction to Economics 104
Module 2 Equity
Performance
Lecture 4 Lessons of History for the Stock Market
Lecture 5a Stock Investing (this material will not be on the exam - it is just background - includes multiple example files at the end)
Lecture 5b Stock Investing Part 2 (this material will not be on the exam - it is background for the stock screening homework)
Video: Lecture 5b Stock Investing Part 2 (same lecture as above posted as an online video with commentary)
Module 3 Mutual Funds
and ETPs
Lecture 6 Mutual Funds and ETPs (includes a one-page file on mutual fund fees at the end)
Module 4 Put and Call
Options
Lecture 7 Introduction to Put and Call Options*
Lecture 8 Put and Call Option Trading Strategy*
Video: Lecture 8b The Aruba Options Model (used in preparation for Aruba Options Homework set)
Module 5
Yield-Bearing Financial Assets (Bonds Notes and Bills)
Lecture 9 Introduction to Yield-Bearing Financial Assets*
Lecture 10 Non-Treasury Yield-Bearing Financial Assets (includes a short description of key interest rates at the end)*
Lecture 11 The Impact of Monetary Policy Upon Interest Rates and YBFA Market Prices
Module 6 Futures
Contracts
Lecture 12 Introduction to Futures Contracts*
Module 7 Real Estate
Special Lecture Measuring Risk with Beta and the VIX*
Lecture 13 Introduction to Real Estate - Treating Your Home as an Investment
Lecture 14 The Real Estate Bubble and Crash of 2007 to 2011
Module 8 Class
Summary and Review of Long-Term Investment Strategy
Lecture 15 Long-Term Investment Strategy
Video: Final Exam Review (This will be removed after the final exam)
Final Exam Review (the PowerPoint slide without the video - this will also be removed after the exam)
FINAL TAKEHOME EXAM (Although this is posted before the in-class final, please do not download this until after that final. You can download it at any time after that, This final has a full set of instructions. It will be due on Wednesday, December 19th at noon in Parsons 1261).
Primary reading and related assignments for Fall 2012
Note: These and the lecture slides for the current semester will appear as they become available, usually a few days before the module begins. These are also linked from the course calendar in the individual modules used in the class.
Chapter 1 Introduction to the World of Stocks
Video: The Failure of the Facebook IPO
Chapter 2 Types of Stock Orders
Video: Using Level II
Chapter 3 A Supply and Demand Model for Stocks
Chapter 4 A History of Stock Market Performance
Mutual Fund Basics (from Investopedia)
Exchange Traded Funds (Chapter 3 of the 2012 Investment Company Factbook, 52nd edititon)
Chapter 5 Exchange Traded Funds (ETFs) and Other Exchange Traded Products*
Mutual Fund Fees (brief document also attached to the end of Lecture 6)
Chapter 6 Put and Call Options*
Retirement Accounts (a cryptic, important description of retirement account options like 401-Ks and IRAs - not assigned until Module 5).
Video: Retirement Accounts (meant to accompany the Retirement Accounts document, to motivate it and explain its importance - watch either before or after reading it).
Chapter 7 The Market for United States Treasury Securities
Chapter 8 Bond and Note Valuation and Related Interest Rate Formulas*
Chapter 9 Futures Contracts*
Chapter 10 Residential Real Estate as an Investment and a Place to Live