Part 1: What is investment?
Join the course on introduction to investments on http://symynd.com/. Topic covered: Returns, The Historical Record, Average Returns: The First Lesson, Return Variability: The Second Lesson, More on Average Returns, Risk and Return, investment returns, total dollar return versus total percent return, dividend yield, capital gains yield, historical returns, risk-free rate of return and risk premium, measures of risk — variance and standard deviation — the higher the standard deviation, the higher the risk, normal distribution — the “bell curve”, Classifying Securities, Interest-Bearing Assets, Equities, Derivatives, Options, short-term investments (a.k.a. “cash” investments) — minimal interest and preservation of capital, retail short-term securities: savings accts, money market funds, certificates of deposits, Treasury bills (a.k.a. T-bills), institutional (or very “high net worth” individuals) short-term securities: commercial paper, banker’s acceptance notes, emergency fund.