Maricopa Community Colleges  GBS261   19962-99999 
Official Course Description: MCCCD Approval: 10/24/95
GBS261 19962-99999 LEC 3 Credit(s) 3 Period(s)
Investments I
Evaluation of various investment forms including study of inflation, taxation, government securities, stocks and bonds, real estate and retirement plans. Prerequisites: None.
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MCCCD Official Course Competencies:
 
GBS261   19962-99999 Investments I
1. Describe the basic characteristics of available investment opportunities. (I)
2. Describe the potential risks and rewards of investing in the security market. (I)
3. List the characteristics, advantages and disadvantages of investments in corporate bonds, municipal bonds, government bonds, and treasury bills. (II)
4. List the characteristics, advantages and disadvantages of investments in common and preferred stocks, and investment companies. (II)
5. Describe the process for buying and selling securities. (III)
6. List several laws that govern the securities market. (III)
7. List the steps to open an account at a stock brokerage firm. (III)
8. Describe the services that are available through a stock brokerage firm. (III)
9. Identify the differences between the various stock exchanges. (IV)
10. Describe how to place various types of buy and sell orders with a broker. (IV)
11. Describe how financial ratios and other indicators can be used to evaluate a company's performance. (IV)
12. List the sources of investment information that are available to investors. (V)
13. Describe, in general terms, how the economy affects security values. (V)
14. Describe how to evaluate an industry and its potential for growth. (V)
15. Describe how to use available information in order to make an investment decision. (V)
16. Calculate selected rates and percentages from corporate financial statements. (V)
17. Interpret bar, point and figure charts for investment decisions. (V)
18. Describe five investments that offer tax-shelter benefits. (VI)
19. List the advantages and disadvantages of selected real estate investment opportunities. (VII)
20. Describe the option market and the risks and rewards that exist in this investment. (VII)
21. Describe the characteristics of convertible bonds, warrants, and rights. (VII)
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MCCCD Official Course Outline:
 
GBS261   19962-99999 Investments I
    I. Investment Opportunities
        A. Types
          1. Stocks
          2. Bonds
          3. Real Estate
          4. Commodities
          5. Collectibles
          6. Options
          7. Precious Metals and Gems
        B. Risks and Returns
          1. Types
          2. Evaluating
      II. Equity and Debt Investments
          A. Equity Securities
            1. Common Stock
            2. Preferred Stock
            3. Investment company shares
          B. Debt Securities
            1. Corporate bonds
            2. State and local bonds
            3. United States Government Bonds
            4. Treasury Bills
            5. Government Agency Securities
            6. Municipal Bonds
        III. Securities Trading
            A. Role of Investment Bankers
            B. Primary and Secondary Markets
            C. Securities Industry Regulations
              1. Security Act of 1933
              2. Securities Exchange Act of 1934
              3. Maloney Act
              4. Investment Company Act of 1940
              5. Securities Investor Protection Act of 1970
            D. Brokerage Firms
              1. How to select
              2. Opening an account and registration certificates
              3. Investor services
              4. Full service and discount brokerage firms
          IV. The Securities System
              A. Stock Exchanges
                1. New York Stock Exchange
                2. American Stock Exchange
                3. Over-the-counter Market
                4. Executing orders on the exchange
              B. Averages and Indexes
                1. Dow Jones Averages
                2. Standard and Poors Price Index
                3. New York Stock Exchange Index
                4. American Stock Exchange Index
                5. NASDAQ
                6. Bond Indexes
              C. As Company Performance Indicators
            V. Investment Analysis
                A. Information Sources
                  1. Periodicals
                  2. Government
                  3. Advisory services
                  4. Brokerage firms
                  5. Trade publications
                  6. Company sources
                B. Analysis Factors
                  1. Interest rates
                  2. Business indicators
                  3. Economic data
                  4. Demographic data
                  5. Economic life cycles
                C. Industry Analysis
                  1. Industry life cycle
                  2. Growth patterns
                  3. Social trends
                  4. Technology factors
                D. Company Analysis
                  1. Products
                  2. Markets
                  3. Management
                  4. Financial statements
                E. Financial Statement Analysis
                  1. Ratios and indicators
                  2. Depreciation
                  3. Inventory Valuation
                  4. Determining fundamental values
                F. Technical Analysis
                  1. Charts
                  2. Dow theory
                  3. Chart patterns
                  4. Technical indicators
                  5. Market trends
                  6. Formula plans and investing
              VI. Taxes and Tax Shelters
                  A. Income Taxes
                    1. Tax rate schedule
                    2. Capital gains and losses
                  B. Tax Shelters
                  C. Oil and Gas
                  D. Agriculture
                  E. Retirement Plans
                    1. IRA
                    2. KEOGH
                    3. 401 K
                    4. 403 B
                VII. Alternative Investments
                    A. Real Estate Investments
                      1. Real estate investment trusts
                      2. Mortgage-backed investments
                      3. Land
                      4. Rental property
                    B. Options
                      1. Use of options
                      2. Put and Call options
                      3. Strategies
                    C. Convertible Bonds, Warrants and Rights
                      1. Characteristics
                      2. Determining values
                      3. Terms of offerings
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