Financial
Markets
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.
Primary reading assignments for Fall 2011
Introduction to the World of Equities Chapter 1
A Stock Market Supply and Demand Model Chapter 2
Types of Stock Orders and Order Listings Chapter 3
VideoCast explanation of how NASDAQ Level II works (Note: View this only after reading Types of Stock Orders and Order Listing).
Mutual Fund Basics (Investopedia)
Introduction to ETFs (Investment Company Institute Chapter 3 2010 Investment Company Factbook 50th edition)
Exchange Traded Funds Chapter 5
Introduction to Put and Call Options Chapter 6 *
The Market for U.S. Treasury Securities Chapter 7
Bond and Note Valuation and Related Interest Rate Formulas Chapter 8 *
The Futures Market Chapter 9 *
Residential Real Estate as an Investment and a Place to Live Chapter 10
Lecture Slides for Fall 2011
Module 1 Introduction
to Equities
Lecture 1 Introduction to Economics 104
Lecture 2 Stock Market Fundamentals
Lecture 3 Stock Exchanges and Automated Trading Centers
Module 2 Equity
Performance
Lecture 4 Stock Market Performance - Lessons from History
Lecture 5 Individual Stock Selecting
Module 3 Mutual Funds
and ETFs
Lecture 6 Mutual Funds and ETFs (includes a one-page file on mutual fund fees at the end)
Module 4 Call and Put
Options
Lecture 7 Introduction to Call and Put Options *
Lecture 8 Option Trading Strategies *
Special slide set: The Aruba Options Model *
Module 5
Yield-Bearing Financial Assets (Bills, Notes, and Bonds)
Lecture 9 Introduction to Yield-Bearing Financial Assets and Yield Determination *
Lecture 10 Corporate, Sovereign, Municipal and Money Market Debt (there is a short article about interest rates at the end of this set)
Lecture 11 The Impact of Policy Upon Interest Rates and Bonds Prices *
Module 6 Futures
Contracts
Lecture 12 Futures Contracts *
Module 7 Real Estate
Lecture 13 Introduction to Residential Real Estate
Lecture 14 The Real Estate Bubble 2007-2011
Module 8 Long-term
Investment Strategy
Lecture 15 Long Term Investment Strategy