Chapter 3: Introduction to Stocks

In the Chapter 3 module, you will 

• Be introduced to the definition of stocks, their advantages and disadvantages, and historical returns
• Review the rapidly changing universe of stock markets 
• Investigate the various stock transactions and associated fees
• Explore the major stock market indices, the major characteristics of stocks, and various stock measurements
• Examine the major stock types, market capitalization, and stock investing strategies

By the end of this module, you should be able to

1. Describe the various components, characteristics, benefits, advantages, and disadvantages of stocks and stock investing
2. Identify and describe the various major stock markets, stock transactions, and fees
3. Outline the major stock types and their risk/return aspect
4. Calculate stock measures including earnings per share, dividend payout ratio, price-to-earnings ratio, and market capitalization
5. Describe the advantages and disadvantages of the major stock investing strategies

Stocks are exciting!  Stocks are sexy!  Stocks are risky!

Yes, Dear Students, stocks are where the action is in the investment world, especially for those with a long-term time horizon. We are going to spend the next four to five weeks immersing ourselves in the world of stocks.

Remember that you will so be the official the Investment Guru for your family, friends, and co-workers. They are counting on you to cut through all the hype and hoopla. So let's get started on our long journey. All of us at Southwestern are very proud of you! 

Presentation File and Study Guide

Presentation file Links to an external site. - Study guide Links to an external site.