This text is written in an informal, conversational style with emphases on investing in common stocks and traditional security analysis, applications, historical context, qualitative factors, and relevance to the individual investor. There is extensive use of real companies and investment situations using the likes of Disney, Home Depot, Intel, Microsoft, Nike, Southwest Airlines, and Wal-Mart. Most chapters have one or more mini-cases.
Table of Contents
PART I. THE WORLD OF INVESTMENTS. 1. Prelude: Investing and Investments. 2. Fundamentals of Risk and Return. 3. Direct Investment Alternatives. 4. Mutual Funds. PART II. FINANCIAL MARKETS AND INVESTMENT RETURNS. 5. Organization of the Financial Markets. 6. Investor Participation in the Financial Markets. 7. Market Efficiency: Concept and Reality. 8. Technical and Fundamental Analysis: How the Pros Make Investment Decisions. PART III. FIXED INCOME SECURITIES. 9. Fixed Income Securities: Valuation and Risks. 10. Managing Bond Portfolios. PART IV. PRINCIPLES OF SECURITY ANALYSIS. 11. Economic and Industry Analysis. 12. Company Analysis: The Historical Record. 13. Company Analysis: Looking Forward. 14. Fundamentals of Common Stock Valuation. PART V. DERIVATIVE SECURITIES. 15. Fundamentals of Options. 16. Futures Contracts. PART VI. MODERN PORTFOLIO THEORY 17. Risk and Diversification. 18. Capital Asset Pricing Theory. 19. Extension of the Capital Asset Pricing Theory. PART VII. INVESTMENT MANAGEMENT. 20. Building and Managing an Investment Portfolio 21. Evaluating Investment Performance. APPENDICES. A. Sources of Investment Information. B. Careers in Investments. C. Answers to Recap Questions.