Schaum's Outline of Investments | Schaum's Outline

Schaum's Outline of Investments

Authors: Jack Francis and Richard Taylor

Published: March 2000

eISBN: 9780071503891 0071503897 | ISBN: 9780071348492

Contents

Chapter 1 Money Market Securities

1.1 Money Markets

1.2 Markets Are Made by Dealers and Brokers

1.3 United States Treasury Bills

1.4 Banker's Acceptances, BAs

1.5 Federal Funds

1.6 Certificates of Deposit, CDs

1.7 Eurodollars

1.8 Commercial Paper

1.9 Repurchase Agreements, Repos

Chapter 2 Common and Preferred Stock

2.1 Common Stock

2.2 The Corporation

2.3 Characteristics of Common Stocks

2.4 Preferred Stock

2.5 Common Stock Dividends and Splits

Chapter 3 Corporate Bonds

3.1 Characteristics of Corporate Bond Issues

3.2 The Determinants of Corporate Bonds' Discount Rates

3.3 The Issuer's Financial Condition

Chapter 4 The Time Value of Money

4.1 Compound Interest

4.2 Discounted Present Value

4.3 Annuities

Chapter 5 U.S. Treasury, Agency and Related Bonds

5.1 Characteristics of Government Securities in the United States

5.2 The Marketability of Treasury Securities

5.3 Treasury Bills

5.4 Certificates of Indebtedness

5.5 Treasury Notes

5.6 Treasury Bonds

5.7 Newspaper Price Quotations for Treasury Securities

5.8 Different Bond Rate of Return Measures

5.9 Special Issues

5.10 Agency Securities

5.11 Zero Coupon Bonds

Chapter 6 Municipal Bonds

6.1 Municipal Securities Defined

6.2 Insured Municipal Bond Issues

6.3 Default Risk Analysis for Municipal Bonds

Chapter 7 Issuing and Trading Sercurities

7.1 Investment Bankers Make Primary Markets

7.2 Primary and Secondary Markets Contrasted

7.3 Organized Securities Exchanges

Chapter 8 Secondary Security Markets

8.1 Introduction

8.2 Over-the-Counter Markets

8.3 Trading Arrangements

8.4 Full and Discount Brokerage Services and Online Trading

8.5 Specialty Brokerage Services

Chapter 9 Federal Investments Regulations

9.1 Introduction

9.2 The Glass-Steagall Act of 1933

9.3 The Securities Act of 1933

9.4 The Securities Exchange Act of 1934

9.5 The Public Utility Holding Company Act of 1935

9.6 The Maloney Act of 1938

9.7 The Trust Indenture Act of 1939

9.8 The Investment Company Act of 1940

9.9 The Investment Advisors Act of 1940

9.10 The Real Estate Investment Trust Act of 1960

9.11 The Securities Investor Protection Corporation Act of 1970

9.12 The Commodity Futures Trading Commission Act of 1974

9.13 Employment Retirement Income Security Act of 1974

9.14 The Securities Reform Act of 1975

9.15 The Securities Acts Amendments of 1975

9.16 The National Bankruptcy Laws

Chapter 10 Security Market Indexes

10.1 Introduction

10.2 Different Averages and Indexes Exist

10.3 The Construction of Indexes

10.4 Maintenance Problems with Security Market Indexes

10.5 Contrasting Different Market Indicators

10.6 The Naïve Buy-and-Hold Strategy

10.7 Comparing Investment Alternatives

Chapter 11 Analysis of Financial Statements

11.1 Introduction

11.2 Financial Ratios

11.3 Interpretation of Ratios

11.4 Problems with Financial Statement Analysis

Chapter 12 Short Positions, Hedging, and Arbitrage

12.1 Introduction

12.2 Long and Short Positions

12.3 Hedged Positions

12.4 Arbitrage

12.5 Differing Motivations for Short Selling

Chapter 13 Total Risk and Risk Factors

13.1 Introduction

13.2 Default Risk

13.3 The Interest-Rate Risk Factor

13.4 Purchasing Power Risk

Chapter 14 Bond Valuation

14.1 Bond Values

14.2 Bond Duration

Chapter 15 Bond Portfolio Management

15.1 The Level of Market Interest Rates

15.2 Yield Spreads

15.3 Term Structure of Interest-Rate Theories

15.4 Bond Portfolio Immunization

Chapter 16 Common Stock Valuation

16.1 Present Value of Cash Dividends

16.2 Earnings Approach

16.3 Value versus Price

Chapter 17 Technical Analysis

17.1 The Concept

17.2 Types of Charts

17.3 Dow Theory

17.4 Relative Strength

17.5 Contrary Opinion

17.6 Moving Average

17.7 The Confidence Index

17.8 Trading Volume

17.9 Breadth of Market

Chapter 18 Efficient Markets Theory

18.1 The Random Walk Theory

18.2 Levels of Market Efficiency

18.3 Anomalies

Chapter 19 Futures

19.1 Commodities

19.2 The Futures Contract

19.3 Hedging with Commodities

19.4 Speculation with Commodities

19.5 Interest-Rate Futures

19.6 Stock Index Futures

19.7 Foreign Currency Futures

Chapter 20 Put and Call Options I

20.1 Options

20.2 Call Options

20.3 Put Options

20.4 Combinations

20.5 Options on Indexes

20.6 Options on Futures

Chapter 21 Put and Call Options II

21.1 The Black-Scholes Formula

21.2 Using Put-Call Parity

21.3 Equity as a Call Option

Chapter 22 Portfolio Analysis

22.1 Introduction

22.2 Covariance of Returns

22.3 Correlation

22.4 Portfolio Return

22.5 Portfolio Standard Deviation

22.6 Two-Asset Case

22.7 Efficient Frontier (EF)

22.8 Optimum Portfolio

Chapter 23 Capital Market Theory

23.1 Capital Market Line (CML)

23.2 Simple Diversification Reduces Risk

23.3 Characteristic Line

23.4 Capital Asset Pricing Model (CAPM)

Chapter 24 Arbitrage Pricing Theory (APT)

24.1 The Law of One Price

24.2 Arbitrage Pricing for One Factor

24.3 Two-Factor Arbitrage Pricing

24.4 Multifactor Arbitrage Pricing

Chapter 25 Portfolio Performance Evaluation

25.1 Mutual Funds

25.2 Geometric Mean Return

25.3 Sharpe's Performance Measure

25.4 Treynor's Performance Measure

25.5 Jensen's Performance Measure

25.6 Comparison of Performance Measures

25.7 Future Investment Value

Chapter 26 International Investing

26.1 Introduction

26.2 International Diversification

26.3 Foreign Exchange Risk

Appendix A: Present Value of $1

Appendix B: Future Value of $1

Appendix C: Present Value of an Annuity of $1

Appendix D: Future Value of an Annuity of $1

Index