presented by the ucla undergraduate investment society introduction to investing
TRANSCRIPT
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PRESENTED BY THE UCLA UNDERGRADUATE INVESTMENT SOCIETY
Introduction to Investing
SHANE SIDERIS
PARTHTHAKKAR
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What is Investing?
The Right Mindset Know Yourself
Defining Investing “An investment operation is
one which, upon thorough analysis, promises safety of principal and an adequate return.” - Benjamin Graham
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How do we Invest?
We Utilize a Financial Security
What is a financial security?
•Originally used to refer financial instruments secured by an asset.•In modern use, it can refer to all financial instruments regardless of if they are secured.
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Financial Securities
Can be broken down into threecategories:
Equity (stocks)
Debt (bonds, debentures, etc)
Derivatives (options, swaps,
futures)
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Investing Vehicles (Securities)
Marketable Securities Stocks Bonds Options Commodities/Futures Foreign Exchange Treasury Bills
Non-Marketable Securities EE and I Government Bonds Mutual Funds
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Stocks and their trading
Plain and simple, stock is a share in the ownership of a company. Stock represents a claim on the company's assets and earnings. As you acquire more stock, your ownership stake in the company becomes greater. Whether you say shares, equity, or stock, it all means the same thing.
Discount Broker vs. Full Broker
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How are stocks traded?
NYSE Face-Face Floor
NASDAQ OTC
AMEX
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What Causes Stock Prices to Change?
Supply and DEMAND!!
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The Bulls, The Bears And The FarmThe Bulls
The Bears
The PIGS
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Stock Market Concepts
Technical Analysis
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Stock Trading Concepts Continued
Fundamental Analysis
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Onto the Fundamentals
How do go about doing this? Financial Statements Ratios
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Balance Sheet
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Income Statement
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Statement of Cashflow
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Statement of Owners/Shareholders Equity
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All of the Ratios
P/E RatioDividend YieldCurrent RatioQuick Ratio (acid test)Earnings per ShareROIEffective Tax Rate
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Other Esentials
Market CapitalizationVolume
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Practice