1. FIN 402 Investment Fundamentals and Portfolio Management

2. FIN 402 Weekly Topics Overview of the Investment Environment Securities Analysis Risk and Portfolio Analysis Optimal Capital Market Strategies Special Topics in Investments and Portfolio Management

3. Week One Overview of the Investment Environment

4. Week One Objectives Describe capital market instruments. Determine asset classes. Explain how the current investment environment impacts investment decisions. Analyze the investment banking process.

5. Overview of the Investment Environment Capital market instruments –Term to maturity – Characteristics of

6. Overview of the Investment Environment Investment banking process –Capital need exists –Contacts investment banker –Financial analysis of company –Organize syndicate and selling group –Produce preliminary prospectus (red herring) –Due diligence –Create final prospectus –Issue offering

7. Overview of the Investment Environment Investment banking environment –Securities and Exchange Commission (SEC) laws and regulations –Financial markets –Asset classes –Market participants

8. Overview of the Investment Environment Sources of investment information –General economic information –Industry information –Firm-specific information

9. Overview of the Investment Environment Careers in investments –Investment banker –Stock broker –Certified Financial Analyst (CFA) –Specialist –Portfolio manager –Certified Financial Planner (CFP)