BUS 315 Lecture : BUS 315 Ch01.pdf
16 Mar 2013
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Document Summary
Chapter summary: objective: to provide a general overview of the investment environment, a short history of investing, the economic system and investment, individuals and financial intermediaries, recent trends, the agency problem, lessons to learn. A short history of investing: the crash of 1929 and the great. Depression p: one-day panic in 1987, the technology bubble" in the nineties gy and, the bear market" of the new millennium, the financial crisis of 2008. The economy and investment: the transfer of capital, net users vs. net savers, current vs. later consumption, real assets (investment, assets used to produce goods and services, financial assets (investment, claims on real assets. Consumption timing: allocation of risk, separation of ownership and, separation of ownership and. The investment process: saving and investing - portfolios, asset allocation risk/return trade-off, stocks, bonds, cash, other, security selection, which stocks/bonds in portfolio, security analysis. V l: valuation of financial assets f fi i i l, active vs.
