Chapter 01 Gitman

Part One
Preparing to Invest
Part One Includes
Chapter 1 Investment Environment
Chapter 2 Markets and Transactions
Chapter 3 Online Information and Investing

Chapter 1
Investment Environment
 Outline
Learning Goals
I. Investments and the Investment Process
A) Types of Investments
1. Securities or Property
2. Direct or Indirect
3. Debt, Equity, or Derivative Securities
4. Low or High Risk
5. Short or Long Term
6. Domestic or Foreign
B) The Structure of the Investment Process
1. Participants in the Investment Process
2. Government
3. Business
4. Individuals
5. Types of Investors
Concepts in Review
II. Investment Vehicles
A) Short Term Vehicles
B) Common Stock
C) Fixed Income Securities
1. Bonds
2. Preferred Stock
3. Convertible Securities
D) Mutual Funds
E) Derivative Securities
1. Options
2. Futures
F) Other Popular Investment Vehicles
Concepts in Review III. Making Investment Plans
A) Steps in Investing
1. Meeting Investment Prerequisites
2. Establishing Investment Goals
3. Adopting an Investment Plan
4. Evaluating Investment Vehicles
5. Selecting Suitable Investments
6. Constructing a Diversified Portfolio
7. Managing the Portfolio
B) Considering Personal Taxes
1. Basic Sources of Taxation
2. Types of Income
a. Ordinary Income
b. Capital Gains and Losses
3. Investments and Taxes
4. Tax-advantaged Retirement Vehicles
C) Investing Over the Life Cycle
D) Investing in Different Economic Environments
1. Stocks and the Business Cycle
2. Bonds and Interest Rates
Concepts in Review
IV. Meeting Liquidity Needs: Investing in Short-Term Securities
A) Role of Short Term Securities
1. Interest on Short Term Securities
2. Risk Characteristics
3. Advantages and Disadvantages of Short Term Investments
B) Popular Short Term Investment Vehicles
1. Deposit Accounts
2. Federal Government Issues
3. Nongovernment Issues
C) Investment Suitability
Concepts in Review
Summary
Putting Your Investment Know-How