INVESTMENTS
FINA 3346
Fall Semester 2001
Course Prerequisites: Managerial Finance 3331
Time of Class: 12:00 to 12:50 M W F
Class Location: 232 Bibb Graves
Course Description: Procedures and operations of the stock and bond markets.
Course Objectives: Upon completion of the course, the student should:

- Be familiar with different investment securities.

- Know the types of stock market transactions available to individual investors.

- Be able to identify significant sources of information.

- Understand the concepts of risk and return as they relate to investing in securities and the stock market.

- Understand the mechanics of fundamental analysis for valuing common stocks

- Understand the basics of an economic analysis (forecast.)

- Understand the basics of an Industry analysis (forecast.)

- Understand the philosophy and basic tools of technical analysis.

- Be able to evaluate the merits of fundamental analysis versus technical analysis.

- Be familiar with the tenants of the efficient market hypothesis.

- Understand the basics of modern portfolio theory.

- Understand the risk, return and mechanics of options (Put and Call.)

- Understand the basic of bond valuation, analysis. and strategies.

- Understand the purpose and benefits of investment companies.

- Understand the advantages and disadvantages of international investing.

- Be able to develop a list of do and don'ts to assist in developing an investment strategy.
Text(s): Investments: Analysis and Management, 7th Edition, Charles P. Jones, (John Wiley & Sons, Inc.) 1999.
Other Materials: You are encouraged to read the Wall Street Journal, Barron’s and Business Week regularly (subscriptions are optional). We will discuss various articles from these sources throughout the semester. You are encouraged to bring to the attention of the class any information discovered from reading these publications. Please note that these are not the only sources of information available (e.g., Forbes or the Internet.).
Grading Methods:

Exams

40 % of final grade

Comprehensive Final Exam

25% of final grade

Special Project Assignments

25% of final grade

Quizzes and Problem Assignments

10% of final grade

A

88-100%

B

87- 74%

C

73- 60%

D

59- 46%

F

47- 0%

HOMEWORK (ASSIGNMENT) POLICY:

1. Announced required assignments will count toward your final grade. To be considered on time they must be handed in at the beginning of class. Any point after class begins the assignment is considered late.

a. The penalty for a late assignment is 10 points the first day and 2 points each additional day Late

b. If you are unable to attend class on an assignment due date, the homework must still be handed in during class. You may turn in the assignment early or someone may turn in the assignment for you during the class.

2. Homework assignments will be announced during the semester.

QUIZ POLICY:

Quizzes administered during the course may or may NOT be announced and there will be no make-ups. For every six quizzes given, you’ll be able two drop one. For example, if 6 quizzes are given you’ll be able to drop one. If 11 quizzes are given 1 will be dropped, if 12 quizzes two quizzes will be dropped. Usually the unannounced quizzes are the result of students not participating or preparing for class.

TEST POLICY:

There will be at least 4 exams during the semester and a comprehensive final examination. The material covered on the exams is indicated in the course content section. The exams are given during regular class periods and may consist of problems, essay and multiple-choice questions. Make-up exams will be given only for documented (on letterhead), approved absences. See ATTENDANCE POLICY. Make up exams are administered only to students who have received approval from the professor prior to the test date. The make-up exam must be taken within one week of the student's return to class. Make-ups are different from exams given in class. A grade of zero will be assigned for an exam missed due to an unexcused absence.

Exams will not be returned in class. You may come by the office during office hours to review the exam. You have one week from the date the exam results are announced to review and/or questioning the grading the exam.

 
Mid-term Grade Policy In accordance with University policy, mid-term grades will be reported for each student. Your mid-term grade will be determined by your performance on tests and homework grades administered prior to the mid-term grade due date. Since there are several major tests and assignments, your mid-term grade only represents a percentage of your final grade. Therefore, you have ample time to either improve your mid-term grade or let it fall significantly.
Class Procedure and Requirements: There are NO social promotions! You must earn a passing grade by meeting course objectives. Faithful attendance, a pure heart, noble intentions, curly hair, blue eyes, etc. -- without genuine achievement -- will not enable you to pass the course. Examinations, assignments, and quizzes will be the criteria for grades.

The approach used will be classroom lecture covering concepts and problem solving technique(s). Class participation and discussion is strongly encouraged. I believe participation is essential for this course to be interesting and for students to get the maximum benefit from the course. If you have a question, ask it! It will likely benefit us all.

End-of-chapter questions and problems are assigned (in class) to assist with your comprehension of chapter materials. While you will not be required to hand these in, you should complete them when assigned and be prepared to discuss them during class.

The student will be expected to attend scheduled class meetings, complete reading and problem assignments prior to class.

COURSE CONTENT:

Chapters Topics

1. Understanding Investments

2. Investment Alternatives

4. Securities Markets

5. How Securities Are Traded

6. The Returns and Risks from Investment

7. Expected Return and Risk

8. Bond Yields and Prices

9. Bonds: Analysis and Strategy

10. Common Stock Valuation

11. Common Stocks: Analysis and Strategy

13. Economy / Market Analysis

14. Industry Analysis

15. Company Analysis

16. Technical Analysis

12. Market Efficiency

17. Options

19. Portfolio Select

20. Capital Market Theory

21. Portfolio Management

3. Investment Companies

22. Evaluation of Investment Performance

18. Futures

 

CLASSROOM ADMINISTRATION

Students are expected to:

1. Punctually attend all scheduled classes. Students who arrive after class begins will be counted absent. See attendance policy.

2. Be responsible for all instructions and assignments given in class as well as for the supporting textbook content.

3. Read the textbook material before the lecture. This leads to a better understanding of the lecture as well as the opportunity to ask questions about material(s) in the text that were unclear or that the student did not understand.

4. Hand in assignments on the assigned due date during class. See homework policy.

5. Not wear hats or sunglasses in the classroom.
Daily Assignment Assignments will be announced in class on Friday for the following week.
Dates to Remember: First day of class: August 20
Deadline for adding course August 27
Deadline to process administrative drops August 27
Holiday September 3
Mid-term grades due October 5
Last day to drop a course October 12 without academic penalty
Last day to withdraw October 12 without academic penalty
No Class October 26
Holiday November 12
Holidays November 21 – 25
Dead day December 5
Final Examination December 7 (8:00am – 10:00am)
Additional Services: AMERICANS WITH DISABILITIES ACT: Any student whose disabilities fall within ADA must inform the instructor at the beginning of the term of any special needs or equipment necessary to accomplish the requirements for this course.
Attendance Policy: 1. Class Roll: Class roll will be taken at the beginning of the class session. Students who arrive after their name is called will be marked absent.

2. Attendance is mandatory. If a student misses a class it is his/her responsibility to obtain all information and materials presented (including materials covered, handouts, skills learned, and homework assignments) during his/her absence.

I do not repeat lectures nor perform the tutoring function for students who are absent. Each absence will make the successful completion of this course more difficult, since finance courses are cumulative in nature and days missed from class are lost knowledge. Exams will include not only the material from the assigned chapters in the text, but also from any other materials covered in class lectures.

3. Excused absences: Excused absences have the following characteristics:

a. Professor was informed prior to the absence.

b. Professor determines that the absence is excused.

c. Absence is of the following type:

1. Participation in a documented official university function that does not permit the student’s class attendance (e.g., participation in athletic events, field trips, etc.)

2. Severe illness: A hospital stay, or a doctor's excuse saying that it is impossible for student to attend class(es). Please note, this does not include scheduled medical appointments nor driving someone else to doctor.

3. Death of immediate family member (grandparent, parent, sibling, or child)

4. Appearance in court

5. Personal situations that are approved by the professor in advance of the time the student will to be absent.

d. Written documentation (on letterhead) must be provided.
Incomplete Work Policy: Any incomplete work at the end of the term will not be accepted unless the student can provide acceptable and clear documentation prior to grades being submitted to the Registrar.
Cheating Policy: If you are caught cheating, you will receive a course grade of "F".
Other Information: The emphasis in this course is on developing an understanding of:

(1) The institutional environment of investments;

(2) The fundamental analysis approach to security analysis,

(3) The basics of portfolio and capital market theory; and,

(4) The concepts of market efficient market for investors.

(5) How to identify viable investment opportunity.

The focus of the course will be equity securities, but other securities such as bonds and derivatives (options) will be discussed

The purpose of this course is to acquaint the student with the vocabulary and principles associated with investment analysis within a dynamic