This course is an introduction to commonly used investment vehicles including stocks, bonds, money market securities, investment companies, and futures and options contracts and to basic valuation models and technical analysis. Particular emphasis is given to three competing approaches to stock investment: fundamental analysis, technical analysis and efficient market analysis. Topics to be covered include the distribution of securities to the public, financial markets, the broker-client relationship, different types of orders investors can place with their broker, short-sales of securities, investment companies, margin accounts, speculation, and hedging. Also studied are debt instruments including money market securities, Treasury bonds, government agency securities, municipal bonds, corporate bonds, convertible bonds, and asset-backed securities. Students are introduced to risk concepts associated with various securities including the capital asset pricing model.

Prerequisite: MBAD6043