I. Common Stocks A. Basic Characteristics 1. Common stock as Corporate Security a. Issuing New Shares b. Stocks Spin-Offs c. Stock Splits 2. Buying and Selling Stocks a. Reading the quotes b. Transaction costs B. Common Stock Dividends 1. The dividend decision a. Corporate vs Market factors b. Important dates 2. Types of dividends a. Cash b. Stock II. Analyzing Common Stocks A. Security analysis 1. Top-down approach 2. Principles of security analysis B. Fundamental analysis 1. Balance Sheet 2. Statement of Cash Flows 3. Income Statement III. Stock Valuation A. Stock valuation models 1. Dividend valuation model 2. Dividends-and-Earnings approach 3. Expected return IV. Market Efficiency and Behavioral Finance A. Efficient Markets 1. Efficient markets hypothesis 2. Weak form 3. Semi-strong form 4. Strong form B. Market Anomalies 1. Calendar Effects 2. Small-Firm Effect 3. Post Earnings Announcement Drift 4. The value effect V. Fixed-Income Securities A. Features of a bond 1. Interest and Principle 2. Maturity date 3. Bond price behavior B. Market for Debt Securities 1. Treasury bonds 2. Agency bonds 3. Municipal bonds VI. Bond Valuation A. Behavior of Market Interest Rates 1. Keeping tabs on interest rates 2. What causes interest rate to move 3. Term structure of interest rates and yield curves B. Pricing of Bonds 1. Bond valuation model 2. Annual compounding 3. Semiannual compounding 4. Accrued interest VII. Mutual Funds and Exchange-Traded Funds A. The mutual fund concept 1. Overview of mutual fund a. Pooled diversification b. Active vs passive management c. Performance of
