After you have read and studied this chapter, you should be able to - Describe the role of
securities markets and of
investment bankers.
- Identify the stock
exchanges where
securities are traded.
- Compare the advantages
and disadvantages of
equity financing by
issuing stock, and detail
the differences between
common and preferred
stock.
- Compare the advantages
and disadvantages of
obtaining debt financing
by issuing bonds, and
identify the classes and
features of bonds.
- Explain how to invest in
securities markets and
set investment objectives
such as long-term
growth, income, cash, and
protection from inflation.
- Analyze the opportunities
stocks offer as investments.
- Analyze the opportunities
bonds offer as investments.
- Explain the investment
opportunities in mutual
funds and exchange-traded
funds (ETFs).
- Describe how indicators
like the Dow Jones
Industrial Average affect
the market.
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