User:Chollestelle

Hey everyone,

Investing: Taking capital and putting it in vehicles that will, hopefully, make more capital in the future

Types of Investments: Stocks Bonds Mutual Funds

Compounding: Taking the returns on an investment and reinvesting those earning so the gains may make capital as well

Bond = debt instrument

Stock = ownership in a company

Mutual Fund = collection of stocks, bonds and other investments

Alternate Investments: Options, Futures, Real Estate, Foreign Currencies

Investment Risks

Business Economic Regulatory Information and Reporting Interest Rate Inflation Investment Strategy

Diversification: Risk Management technique that mixes a variety of investments in a portfolio to minimize risk

Ensuring Diversification

Spread the portfolio Vary your Risk Vary the securities by industry

Dollar Cost Averaging: the process of buying, regardless of the share price, a fixed dollar amount of a particular investment on a regular schedule

Three Classes of an Asset Allocation fund: Stocks, Bonds, Cash

Economic Indicators: GDP, CCI, CPI

Inflation: the persistent increase in the price of goods and services; while the value of the currency decreases Deflation: Take the opposite of the above statement!!!!!!!

Demand Pull: Demand outweighs Supply and thus, prices increase.

Cost Push: Where Companies raise prices to maintain Profit Margins

Fundamental Concept of Economics: Supply vs Demand

Chairman of the Fed: BEN BURNAKE

Duties of the Fed

US GOV BANK CONTROLLER OF THE CURRENCY REGULATOR OF THE MONEY SUPPLY GOLD STORAGE REGULATOR OF THE BANKS BANKER TO THE BANKS

Increases the money supply

Raise reserve requirement Sell US Treasuries Increase interest rates

Decrease the money supply: Reverse the above three

Dividends: a distribution of a portion of the companies earnings

Capital Gain: Realized sale of an investment for a profit

Difference between rights and warrants: TIMEFRAME

Types of Markets: Primary and Secondary

Three secondary markets: NYSE NASDAQ AMEX

GMICE

Economy Companies Specific Factors Industry Factors Gov. Policy Factors Market Factors

Market Cap.

Sm. >2 bill. mid. 2<x<10 bill lg. <10 bill

Growth stocks usually pay little to no dividends. they reinvest

Value stocks a generous dividends, with the objective of income

Morning star Matrix

Value    Blend     Growth

Large x x x

Mid x x x

Small x x x

Dia High Yeild Bond = Junk Bond fund

Bond Ratings : Moody's(Aaa) and s&p(AAA)

Munis = Municipal Bonds

Advantages of Mutual Funds

Professional Managed Diversification Economies of Scale Liquidity Simplicity

Bond Risk Factors

Rising Interest rates Inflation Reinvestment Credit Rating Supply vs. Demand Liquidity Tax Increases

Cash Equivlents = Short Term Debt instruments

DIA Cash Fund = MMKT Funds

Dow Jones is the only index to be measured by Price Weighted system, all others use Market Capitalization

Equity funds are made up of : Growth, Value, Cyclical stocks

Investment Styles: growth, value, blended

Asset Allocation Funds

Short Horizon 90b/10s Intermediate Short 70b/30s Intermediate 50b/50s Etc.

Core = Blended funds

REIT = Real Estate Investment trust

DIA Broker Dealer: DISC

Insurance Co. that covers DIA's fixed funds: TFLIC

NFP can invest in : Annuities, Investor class, and Institutional class mutual funds shares

Two Teir system that DIA USES: Core and Feeder

Difference between Investor and Institutional: Expense Ratio

what bank backs DIA: Investors bank and trust

the New York State Insurance Commission is the place the Separate accounts funds are registered with

Refer to NFP thing earlier but those are the only things that are registered as well