Book Summary of Fundamentals Of Investments This book offers a balanced knowledge of the theory and practice of investment. It introduces readers to the basic set of principles that form the building blocks of modern investment thought and covers the major institutional features and theories of investing. Illustrated with numerous real-world examples, it imparts a working knowledge of the kind of securities that exist, where and how they are bought and sold, and how investment decisions are made. Modular in organization, clear and concise, this book makes minimal use of mathematical notations, while graphs, tables, and illustrations incorporating current market information make the text easy to comprehend.
Table of Contents • Part 1: Introduction—Introduction. • Part 2: The Investment Environment—Buying and Selling Securities. • Security Markets. • Efficient Markets, Investment Value, and Market Price. • Taxes. • Inflation. • Part 3: Modern Investment Theory—The Portfolio Selection Problem. • Porfolio Analysis. • Risk free Lending and Borrowing. • The Capital Asset Pricing Model. • Factor Models. • Arbitrage Pricing Theory. • Part 4: Common Stocks—Characteristics of Common Stocks. • Financial Analysis of Common Stocks. • Dividend Discount Models. • Dividends and Earnings. • Investment Management. • Portfolio Performance Evaluation. • Part 5: Fixed-Income Securities—Types of Fixed-Income Securities.