Fundamentals of Investments

Course Number: BA 242
Transcript Title: Fundamentals of Investments
Created: September 1, 2012
Updated: June 7, 2016
Total Credits: 3
Lecture Hours: 30
Lecture / Lab Hours: 0
Lab Hours: 0
Satisfies Cultural Literacy requirement: No
Satisfies General Education requirement: No
Grading options: A-F (default), P-NP, audit
Repeats available for credit: 0

Prerequisites

WR 115, RD 115, and MTH 20 or equivalent placement test scores

Course Description

Covers a variety of investment vehicles - what they are, how they can be utilized, and the risk and return dynamics.Introducesinterest bearing assets, equity securities, futures and option contracts.Examines securities exchanges and the functions of the broker. Prerequisite: WR 115, RD 115, and MTH 20 or equivalent placement test scores. Audit available.

Intended Outcomes

Upon successful completion of this course, the student will be able to:

  1. Apply the principles of investing such as the concepts of risk and return, behavioral finance, psychology of investing, performance evaluation, diversification and risk allocation.
  2. Understand the major investment vehicles, such as: interest bearing assets, equity securities, future contracts, and option contracts.
  3. Communicate effectively using basic terminology associated with the investment environment.
  4. Understand the workings of the securities markets from brokers to exchanges; how different investments are bought and sold.

Outcome Assessment Strategies

Assessment methods may include: examinations, quizzes, homework assignments, research papers, and small group problem-solving of questions arising from application of course concepts and concerns to actual experience, oral presentations.

Course Activities and Design

Course activities may include: lecture, discussion, demonstrations, online lessons, in class activities, outside readings, written assignments, research projects, group project, guest lecturers/speakers, panel discussions, or other activities as selected by the instructor.

Course Content (Themes, Concepts, Issues and Skills)

Themes, Concepts, and Issues

  • Relationship of risk and return
  • Security types:  interest bearing assets, equity securities, futures contracts, option contracts.
  • Behavioral Finance and the psychology of investing
  • Diversification, risk allocation, performance evaluation

Competencies and Skills

  • Recognize the link between risk rates and associated returns on various investments.
  • Demonstrate an understanding of the various investment opportunities such as:  interest bearing assets, equity securities, future contracts, and option contracts.
  • Explain the workings of the securities markets from brokers to exchanges; how different investments are bought and sold.
  • Analyze basic financial information available for the different investment categories and how to diversify a portfolio of investments.