Chapter-Three培训课件.pptVIP

Value Line Average 1,700 companies from NYSE, AMEX, and NASDAQ Equal-weighted index Weighted equally Regardless of market price or total market value Equal-weighting more closely conforms to the portfolio of individual investors 精品文档 Other Market Indexes New York Stock Exchange /markets/nyse/ The American Stock Exchange / Wilshire 5000 Equity Index /w5000.htm Russell 3000 Index symbol: $RAZ.X? Russell 2000 /r2000.htm Russell 1000 Index symbol: $RUXY? or??$RUI.X? 精品文档 Other Countries Every major country has an index that represents its stock exchange. Here are some of the more important indexes around the world: FTSE 100 - United Kingdom Hang Seng - Hong Kong Nikkei - Japan DAX – Germany (Frankfurt DAX) TSX - Canada CAC 40 France 精品文档 Important Consideration of looking at an INDEX How much the index has changed over a given period of time Hours (intraday) Day Week Month Quarter Semi-annual Year(s) 精品文档 Bond Market Indicators Not widely followed by Index or Average Gauged by Interest-rate movements Rising interest rates falling bond prices Falling interest rates rising bond prices 精品文档 Other Categories of Bonds Treasury Securities Treasury notes Treasury Bills Treasury Bonds Corporate debt Mortgaged-backed securities Municipal Bonds Eurobonds 精品文档 Mutual Fund Averages Mutual funds Preferred choice of investment for many investors in the U.S. worldwide Commitment to mutual funds Necessity of understanding the underlying Stocks Bonds 精品文档 Buying and Selling in the Market Using full service brokers, e.g. Merrill Lynch Salmon Smith Barney UBS Paine Webber Broker must determine investors’ objective Conservative – preservation of capital Income Growth plus income Growth Risk versus (expected) return 精品文档 Buying and Selling in the Market -continued Using discount brokers Using online brokers Charge very low commissions Give stripped-down service No investment advice Communications usually by emails 精品文档 Cash or Margin A