1. 1: Introduction to Financial Markets
I: Introduction
1: Introduction to Financial Markets

2. Dow Jones Industrial Average
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3. Circular Flow Financial Markets Labor Markets Government Households
Goods Markets
Firms
Factors of Production
Capital
Labor
Consumption
Production
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4. Markets
Exist to bring buyers and sellers together

5. Markets
Labor markets .
February 4 & 5, 2014

6. Markets
Primary market
Secondary market

7. Circular Flow
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8. Financial Markets
Facilitate optimal allocation of .
through .

9. Returns Mechanism
Normal Return .
Abnormal Return

10. The beginning of a bubble
Returns Mechanism
Normal Return
Abnormal Return
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11. Efficient Markets Hypothesis
Weak Form .
Semistrong Form
Strong Form

12. Technical Analysis Double Bottom (shaped like a W) [A] Breakout #1
[B] Breakout #2
[C] New Trend

13. Fundamental Analysis Earnings Per Share (EPS)
Price/Earnings Ratio (P/E)

14. availability of working capital
Fundamental Analysis
availability of working capital
Current Ratio
Quick Ratio
liquidity

15. Fundamental Analysis Return on Assets (RoA) Return on Equity (RoE)
Gross Profit Margin on Sales
efficient use of assets
profitability
efficient use of factors of production

16. Practice Questions
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17. Q&P 1-1:
I use my computer and Internet link to chart the movement of all 30 Dow Jones Industrial stocks. I buy and sell according to my analysis of these price movements. If I can generate consistent abnormal returns in this manner then this is a failure of
Charles is a member of the Board of Directors of the Royal Bank. If he can generate consistent abnormal returns in trading Royal Bank shares then this is a failure of
Varya checks out all the Value Line publications and buys everything that Value Line recommends. If she can generate consistent abnormal returns then this is a failure of
I watch Wall Street Week every week. Then when it's over I throw a dart at the Wall Street Journal. I buy whatever the dart hits. If I can generate consistent abnormal returns in this manner then this is a failure of
John Q. Investor analyses the quarterly earnings statements of some fifty obscure small-cap stocks. He then buys according to the earnings pattern disclosed. If he can generate consistent abnormal returns in this manner then this is a failure of

18. 1: Financial Markets in the Economy