Lý thuyết tài chính - Investment planning

PFIN4Investment Planning 11Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. GITMAN/ JOEHNK/ BILLINGSLEY2Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 1 Discuss the role investing plays in financial planning process and identify several different investment objectives2 Distinguish between primary and secondary markets as well as between broker and dealer markets3 Explain the process of buying and selling securities and recognize different types of ordersLEARNING OUTCOMESPFIN4 | CH113Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 4 Develop an appreciation of how various forms of investment information can lead to better investing skills and returns 5 Gain a basic understanding of the growing impact of the computer and Internet on the field of investments 6 Describe an investment portfolio and how you’d go about developing, monitoring, and managing a portfolio of securities LEARNING OUTCOMES (continued)PFIN4 | CH11Investing4Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Process of placing money in some medium in the expectation of receiving future benefitSpeculating: Future value and expected returns are highly uncertainPFIN4 | CH11Investment Objectives5Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Enhance current incomeSave for major purchaseAccumulate funds for retirementSeek shelter from taxesPFIN4 | CH11Ways to Invest6Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Common stockBondsPreferred and convertible securitiesMutual funds, exchange traded funds (ETFs), and exchange traded notes (ETNs)Real estatePFIN4 | CH11Securities Markets7Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Marketplace in which stocks, bonds, and financial instruments are tradedPrimary market - New securities are sold to the public by an issuerSecondary market - Old securities are traded between investorsPFIN4 | CH11Exhibit 11.18Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. U.S. Broker and Dealer MarketsPFIN4 | CH11Regulating the Securities Markets9Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. PFIN4 | CH11To ensure full disclosure of information with respect to new securitiesSecurities and Exchange Commission (SEC): Regulates the disclosure of information about securities and oversees the operation of the securities exchanges and marketsSecurities Act of 1933To provide SEC power to regulate organized securities exchanges and the OTC marketSecurities Exchange Act of 1934Regulating the Securities Markets10Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. PFIN4 | CH11Investment Company Act of 1940To establish rules and regulations for investment companiesSarbanes-Oxley Act of 2002To eliminate corporate fraud as related to accounting practices and information released to investorsDodd–Frank Wall Street Reform and Consumer Protection Act of 201011Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. To improve accountability and transparency in the U.S. financial systemTo discontinue the “too big to fail” regulatory approachPFIN4 | CH11Dodd–Frank Wall Street Reform and Consumer Protection Act of 201012Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. To protect American taxpayers from costly government bailoutsTo protect consumers from exploitative financial services practicesPFIN4 | CH11Significant Federal Legislation13Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. PFIN4 | CH11Maloney Act of 1938Provided for the establishment of trade associationsNational Association of Securities Dealers (NASD): Regulates OTC market operationsSecurities Investor Protection Act of 1970Protects investors against the financial failure of brokerage firmsBull Market and Bear Market14Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. PFIN4 | CH11Bull marketAssociated with investor optimism, economic recovery, and expansionCharacterized by rising securities pricesBear marketAssociated with investor pessimism and economic slowdownCharacterized by falling securities pricesStockbroker (Account Executives)15Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Person who:Buys and sells securities on behalf of clientsGives clients investment advice and informationRequired to understand the client’s investment objectivesPFIN4 | CH11Types of Broker16Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. PFIN4 | CH11Full-service brokerExecutes clients’ transactions and offers a full array of brokerage servicesDiscount brokerCharges low commissions and offers little or no services to investorsOnline brokerDiscount broker through which investors can execute trades electronically/online through a commercial service or on the InternetBrokerage Fees17Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Commissions received by brokerage firms for executing buy and sell orders for their clientsOdd lot: Quantity of fewer than 100 shares of a stockRound lot: Quantity of 100 shares of stock or multiples thereofPFIN4 | CH11Securities Investor Protection Corporation (SIPC)18Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Nonprofit corporation subject to SEC and congressional oversightInsures customer accounts against financial failure of a brokerage firmArbitration: Used to settle disputes between a brokerage firm and its clientsPFIN4 | CH11Types of Order19Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. PFIN4 | CH11Market orderTo buy or sell a security at the best price available at the time it is placedLimit orderTo either buy a security at a specified or lower price or to sell a security at or above a specified priceStop-loss (stop order)To sell a stock when the market price reaches or drops below a specified levelAnnual Stockholders’ Reports20Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Made available to stockholders and interested parties that includes:Financial and descriptive information about a firm’s operations in the recent pastPFIN4 | CH11Financial Press21Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. PFIN4 | CH11Market dataDescribe the general behavior of the securities marketsDow Jones Industrial Average (DJIA)Followed measure of stock market performanceConsists of 30 blue-chip stocks listed mostly on the NYSEFinancial Press22Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. PFIN4 | CH11Standard & Poor’s (S&P) indexesSimilar to the DJIA but employ different computational methods and consist of more stocksNYSE indexConsists performance of all stocks listed on the New York Stock ExchangeDow Jones Wilshire 5000 indexConsists the total market value of the approximately 6,000–7,000 actively traded stocks in the United StatesAsset Allocation23Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Plan to preserve capital by protecting the portfolio against negative market developmentsBy dividing a portfolio among different classes of securitiesPFIN4 | CH11Reasons to Re-evaluate Asset Allocations24Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Change in personal circumstances that changes investment goalsProportion of an asset rises or falls that changes target allocationClose to reaching certain goalPFIN4 | CH11Exhibit 11.625Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Four Model PortfoliosPFIN4 | CH1126Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Investing SpeculatingInvestment planProspectusBid priceAsk priceSecurities and Exchange CommissionNational Association of Securities DealersBull marketKEY TERMSBear marketFull-service brokerDiscount brokerOnline brokerOdd lotRound lotSecurities Investor Protection CorporationMarket orderLimit orderStop-lossPFIN4 | CH1127Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Dow Jones Industrial Average Standard & Poor’s (S&P) indexesNYSE indexDow Jones Wilshire 5000 indexPortfolioDiversificationAsset allocationKEY TERMSPFIN4 | CH1128Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. SUMMARYInvesting is viewed as a process of purchasing securities wherein stability of value and level of return are somewhat predictableEach market under the securities market provides a mechanism for bringing the buyers and sellers of securities togetherThere are different types of market under the securities market and making transactions in each market is simplePFIN4 | CH11