presented by the ucla undergraduate investment society introduction to investing

PRESENTED BY THE UCLA UNDERGRADUATE INVESTMENT SOCIETY

Introduction to Investing

SHANE SIDERIS

PARTHTHAKKAR

What is Investing?

The Right Mindset Know Yourself

Defining Investing “An investment operation is

one which, upon thorough analysis, promises safety of principal and an adequate return.” - Benjamin Graham

How do we Invest?

We Utilize a Financial Security

What is a financial security?

•Originally used to refer financial instruments secured by an asset.•In modern use, it can refer to all financial instruments regardless of if they are secured.

Financial Securities

Can be broken down into threecategories:

Equity (stocks)

Debt (bonds, debentures, etc)

Derivatives (options, swaps,

futures)

Investing Vehicles (Securities)

Marketable Securities Stocks Bonds Options Commodities/Futures Foreign Exchange Treasury Bills

Non-Marketable Securities EE and I Government Bonds Mutual Funds

Stocks and their trading

Plain and simple, stock is a share in the ownership of a company. Stock represents a claim on the company's assets and earnings. As you acquire more stock, your ownership stake in the company becomes greater. Whether you say shares, equity, or stock, it all means the same thing.

Discount Broker vs. Full Broker

How are stocks traded?

NYSE Face-Face Floor

NASDAQ OTC

AMEX

What Causes Stock Prices to Change?

Supply and DEMAND!!

The Bulls, The Bears And The FarmThe Bulls

The Bears

The PIGS

Stock Market Concepts

Technical Analysis

Stock Trading Concepts Continued

Fundamental Analysis

Onto the Fundamentals

How do go about doing this? Financial Statements Ratios

Balance Sheet

Income Statement

Statement of Cashflow

Statement of Owners/Shareholders Equity

All of the Ratios

P/E RatioDividend YieldCurrent RatioQuick Ratio (acid test)Earnings per ShareROIEffective Tax Rate

Other Esentials

Market CapitalizationVolume

Practice