HMC Economics 104

Financial Markets

Professor Gary R. Evans

 

Course Content Page

 

Lecture slides used in Fall 2013

 

Lecture 1 Introduction to Economics 104

Lecture 2 Stock Fundamentals

Lecture 3 The Stock Exchanges and Stock Order Routing

Lecture 4 Stock Market Performance - Lessons from History

Lecture 5a Stock Investing (this includes multiple example files at the end which were not shown in the lecture)

Lecture 5b Stock Investing Part 2 (this material is not given in class and 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)

Lecture 6 Mutual Funds

Lecture 7 Exchange Traded Products (ETFs and ETPs)

Lecture 8 Introduction to Put and Call Options

Lecture 9 Options Trading Strategies

Optional Video: Lecture 9b The Aruba Options Model

Lecture 10: Bonds, Notes, Bills and Interest Rate Determination

Lecture 11: Corporate Bonds and Notes and the Ratings

Lecture 12: Introduction to Futures Contracts

Video: The Twitter IPO

Lecture 13: The Connection between Futures Contracts and ETPs [1 slide per page]  [2 slides per page]

Lecture 14: Long-Term Investment Strategy [1 slide per page]  [2 slides per page]

Lecture 15: Introduction to Real Estate [1 slide per page]  [2 slides per page]

Lecture 16: Real Estate Investing [1 slide per page]  [2 slides per page]

Final take-home exam [You can download and take this at any time after it appears on this page. It has all instructions, deadlines, etc. You are allowed to look at it now and take it later].

 

Primary reading, audio, and video material for Fall 2013

 

Note: These chapters, audio and video and video material 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: Understanding Level II and NASDAQ's Total View

Video: AAPL Level II screen on Sept 10 2013

Chapter 3 A Supply and Demand Model for Stocks

Chapter 4 A History of Stock Market Performance

Chapter 5 Mutual Funds

Chapter 6 Exchange Traded Products (ETPs)

Chapter 7 Put and Call Options

Chapter 8 The Market for U.S. Treasury Securities

Chapter 9 Bond and Note Valuation and Related Interest Rate Formulas

Chapter 10 Futures Contracts [Note: This was revised to include the new Appendix on November 25, 2013. This is the complete chapter, with appendix].

Retirement Accounts (a cryptic, important description of retirement account options like 401-Ks and IRAs).

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 10 Appendix [Note: This is the appendix to the Futures chapter that ties futures contracts to ETNs that was completed on November 25. This is provided in cash you have already read or printed the original body of Chapter 10. The Chapter 10 posted above as of November 25 now includes this appendix].

Guidance questions for The Lost Bank [Read these questions and be prepared to answer them for the final exam].

Chapter 11 Introduction to Real Estate

Mortgage and Minimum Payment Calculation Model [optional - Zip file with Excel workbook enclosed - offered as a useful tool]

 

 

Archival Material

 

Because alumni and others come back to this page for reference sources, at least one lecture and chapter on every subject from classes during the previous year is maintained on this page. As a new lecture and chapter are introduced, they appear above and older lecture and chapter in this archival section disappears. The lectures and chapters are dynamic - they are updated just a few weeks or days before they are delivered. Here is the material from last year.

 

Lecture slides used in Fall 2012

 

Special Lecture Measuring Risk with Beta and the VIX*

 

 

Primary reading and related assignments for Fall 2012

 

[None - all are now in 2013]