Investments: Analysis and Management, 12th Edition

Contents

PART ONE BACKGROUND

1 Understanding Investments

An Overall Perspective on Investing

Establishing a Framework for Investing

Some Definitions

A Perspective on Investing

Why Do We Invest?

Take a Portfolio Perspective

The Importance of Studying Investments

The Personal Aspects

Investments as a Profession

Understanding the Investment Decision Process

The Basis of Investment Decisions—Return and Risk

Checking Your Understanding

Structuring the Decision Process

Important Considerations in the Investment Decision Process for Today's Investors

The Great Unknown

A Global Perspective

The Importance of the Internet

Individual Investors vs. Institutional Investors

Ethics in Investing

Checking Your Understanding

Organizing the Text

Summary

2 Investment Alternatives

Organizing Financial Assets

Direct Investing

A Global Perspective

Nonmarketable Financial Assets

Money Market Securities

The Treasury Bill

Money Market Rates

Checking Your Understanding

Capital Market Securities

Fixed-Income Securities

Bonds

Types of Bonds

Government Agency Securities

Asset-Backed Securities

Rates on Fixed-Income Securities

Checking Your Understanding

Equity Securities

Preferred Stock

Common Stock

Investing Internationally in Equities

Checking Your Understanding

Derivative Securities

Options

Futures Contracts

A Final Note

Summary

3 Indirect Investing

Investing Indirectly

What is an Investment Company?

How Important Are Investment Companies to Investors?

Three Major Types of Investment Companies

Closed-End ...