Indira Paz McKinley, Elizabeth TR 10:10 am BUSI 1301 STOCK MARKET INVESTMENT GAME LEARN BY RESEARCHING TUTORIALS As part

of the toc! Mar!et In"estment #ame, yo$ %ill learn more abo$t the stoc! mar!et by researchin& fi"e t$torials in %%%'in"estopedia'com' (lic! the tab )T$torials* to access these t$torials: 1' -' /' 2' 4' In"estin& 101 + http:,,%%%'in"estopedia'com,$ni"ersity,be&inner, toc! .asics + http:,,%%%'in"estopedia'com,$ni"ersity,stoc!s, .ond 0 1ebt .asics + http:,,%%%'in"estopedia'com,$ni"ersity,bonds, M$t$al 3$nd .asics + http:,,%%%'in"estopedia'com,$ni"ersity,m$t$alf$nds, Ratio Analysis + http:,,%%%'in"estopedia'com,$ni"ersity,ratios,

When you finish a tutorial, write a summary of it, then go on to the next one. 1o not procrastinate in this research, as you must submit the names of your stock selections along with the tutorial summary on the same day. 5o$ %ill see that there are many more t$torials than these fi"e, and it is my hope that yo$ %ill %ant to f$rther yo$r !no%led&e by &oin& into other t$torials as %ell, no% or later' Investing 101 This t$torial teaches many basic points, terminolo&y and strate&ic points for people %ho are thin!in& abo$t p$ttin& their money to %or! and ma!in& an in"estin& for their f$t$re' In"estin& &i"es an alternati"e of earnin& a &reater income %itho$t the hassle of %or!in& e6tra ho$rs' An important concept to $nderstand is that in"estin& is not &amblin&, altho$&h there are some ris!s associated %ith it' .eca$se there are not many la%s or r$les establish on the correct %ay of in"estin&, it is 7$ite diffic$lt to predict and analyzed %ith 1008 certainty any mar!et yo$ decide to in"est in' This is the reason %hy is cr$cial for a person to fi&$re o$t their identity trait before they start any in"estment' There are three %ays to fi&$re this o$t, start by !no%in& yo$r in"estment ob9ecti"es, personality trait, and ris! tolerance' :nce these traits ha"e been identified is easy to mo"e for%ard and decide if a conser"ati"e portfolio or a&&ressi"e portfolio is best s$itable for yo$' Remember that a portfolio can &i"e a person di"ersification as %ell as protection from the decline of any sec$rity that a person mi&ht ha"e' Re&ardless, of the %ay a person decides to in"est their money, either by a stoc!, bonds or m$t$al f$nds the main ob9ecti"e is to p$t the money to %or! so it can start earnin& additional profit for the f$t$re' Stoc B!sics This t$torial &i"es a person the tools needed to create a stron& fo$ndation %hen it comes to ma!in& smart in"estment decisions' This t$torial describes and e6plains the different type of stoc!s a"ailable in the mar!et today, ho% they are traded and %hat ca$ses the prices to chan&e all the time' There are t%o main types of stoc!s; these are common stoc! and preferred stoc!' (ommon stoc!s are the most common type of stoc!, they &enerate a &reater ret$rn than any other type of stoc!' <a"in& a common stoc! share represents that a person no% o%ns part of a company=s o%nership and is entitled to claim a portion of their profits !no%s as di"idends' >ith preferred stoc!s on the other hand, e"en tho$&h a

Indira Paz McKinley, Elizabeth TR 10:10 am person may o%n a part of a company=s membership their "otin& ri&hts are limited' The ad"anta&e of a preferred stoc! is that in"estors are &$aranteed a fi6ed di"ided rate and in case of li7$idation shareholders are paid off before the common shareholder' :nce a stoc! is bo$&ht there are many possibilities on tradin& yo$r stoc!' toc!s can either be traded in a physical location or o$t on a tradin& floor, %hate"er place is $se the information of b$yer and sellers is al%ays sec$re' >hen dealin& %ith stoc! trade a person has to consider if they are $sin& the primary or secondary mar!et as %ell as the ?e% 5or! stoc! e6chan&e @?5 EA, one of the most presti&io$s e6chan&e mar!ets or the ?asda7 %here all the tradin&=s are done electronically' :ne of the main ca$ses in the chan&e of stoc! prices is the infl$ence of s$pply and demand' Is rather &ratifyin& to !no% that any person no%adays can o%n a stoc!, and the best thin&s is that there are many bro!era&e, 1RIPs and 1IPs a person may be able to $se in order to ma!e the best choice' There are plenty of %ebsites, s$ch as yahoo finance %hich ha"e the accessibility to tables for easy readability on specific stoc!s' Bon" # $e%t B!sics This t$torial offers alternati"e options of in"estin&, especially %hen a person feels that a stoc! option is not the ri&ht in"estment for them' This t$torial teaches more in depth abo$t the f$ndamentals of the bonds, the different types of them and each of their important characteristics' .onds are basically the money lar&e or&anizations borro% from in"estors' Each of these in"estors also !no%n as lenders lend a portion of their capital $ntil the total amo$nt the or&anization needs is completed, this is typically done %hen the amo$nt needed by the or&anization is far beyond from %hat the a"era&e ban! can pro"ide' The main ad"anta&e is that the iss$er @the or&anizationA m$st pay the lender money in ret$rn in ret$rn of $sin& his or her money' Is important to $nderstand that bonds are debts %hereas stoc!s are e7$ity, meanin& that by p$rchasin& a bond the in"estor becomes the creditor to the or&anization' Remember that bonds ha"e some many characteristics s$ch as, face "al$e,par "al$e, co$pon or interest rate, mat$rity, and iss$ers of %hich yo$ need to be a%are of' :ne of the most conf$sin& part of a bond is $nderstandin& the price fl$ct$ation' A person may $se the meas$rin& ret$rn %ith yield to fi&$re o$t the ret$rn a person mi&ht &et on a bond, or the yield to mat$rity is a more ad"anced yield calc$lation that sho%s the total ret$rn yo$ %ill recei"e if yo$ hold the bond to mat$rity' There are different types of bonds; #o"ernment bonds %hich incl$de bills, notes, and bonds, m$nicipal bonds, corporate bonds and zero+co$pon bonds' .onds are not hard to read, each bond table incl$des fi"e col$mns %hich di"ide the information in order for easy readability' If a person is interestin& in b$yin& bonds most of these transactions can be completed thro$&h a f$ll ser"ice or disco$nt bro!era&e, ma!e s$re yo$ remember that e"ery transaction re7$ires a commission' M&t&!' (&n" B!sics M$t$al f$nds are becomin& e6tremely pop$lar in the Bnited tates, the dra%bac! of s$ch pop$larity demands ne&ati"e attention, scarin& a%ay ne% in"estors' This t$torial e6plains the basic of m$t$al f$nds and clarifies some of the most ne&ati"e myths s$rro$ndin& them' M$t$al f$nds are &ood in"estment opport$nities for ne% in"estors %ith little or fe%

Indira Paz McKinley, Elizabeth TR 10:10 am !no%led&e on the stoc! mar!et' Bs$ally m$t$al f$nds $nite a &ro$p of people to&ether and in"est their money either on a collection of stoc!s or bonds' There are three %ays to ma!e money of a m$t$al f$nd, money can be made by earned di"idends and interest, sellin& the sec$rity at a hi&her price from %hich it %as bo$&ht @capital &ainA, and by holdin& to the f$nd once the price has increased' :ne of the &reat ad"anta&es of m$t$al f$nd in"estment is that professionals are ones in char&e of mana&in& yo$r money, the disad"anta&e of this is that re&ardless of them ma!in& a profit on the stoc! or not they still &et paid' ome ad"anta&es incl$ded in m$t$al f$nds are di"ersification, economies of scale, li7$idity and simplicity' :n the other hand, f$rther disad"anta&es of m$t$al f$nds incl$de costs, dil$tion, and ta6es' There are three different types of m$t$al f$nds, this incl$des e7$ity f$nds, fi6ed+income f$nds and money mar!et f$nds' Money mar!et f$nds are short+term debt %hich incl$des mostly treas$ry bills, altho$&h they do not ha"e a hi&h ret$rn on yo$r money this types of f$nds are "ery safe' .eca$se most of the c$stomers do not ha"e the necessary !no%led&e abo$t the m$t$al f$nds fees, cost becomes one of the bi&&est problems %ith m$t$al f$nds, the on&oin& yearly fees and transaction fees eats into the total m$t$al f$nd ret$rn' The e6pense ratio helps people by definin& their total e6pense based on the cost of hirin& a f$nd mana&er, administrati"e cost and the last part of on&oin& fees' >hen pic!in& a m$t$al f$nd is important to !eep in mind the load and no+load fees as %ell as the net asset "al$e @?ACA' M$t$al f$nds table are rather easy to find and read, yo$ can accomplish this by &oin& online or readin& the ne%spaper f$nd table' .y bein& correctly informed and e"al$atin& the m$t$al f$nd performance it %o$ld be a bit more challen&in& for an in"estor not to be properly prepared' R!tio An!')sis Analyzin& financial statements are one of the most important information tools needed for e"ery in"estor o$t there' It is imperati"e for in"estors to !no% the difference of e"ery ratio analysis a"ailable' .y ha"in& the !no%led&e in"estors can better comp$te and mana&e their o%n financial earnin&s as %ell as ha"in& a clear meanin& o"er their in"estment e"al$ations' E"en tho$&h so many n$mbers can be intimidatin&, one of the &reatest ad"anta&es of ratio analysis is that %ith ratio analysis yo$ %or! %ith these n$mbers in an or&anized fashion, beca$se e"ery s$bcate&ory of a ratio analysis cate&ory pro"ides a form$la to %or! on' There are si6 main cate&ories of ratio analysis, each %ith their o%n s$bcate&ories' The first cate&ory is the li7$idity meas$rements ratio, %hich incl$de c$rrent ratio, 7$ic! ratio, cash ratio, and cash con"ersion cycle' Di7$idity meas$rements ratio helps meas$re the ability of a company to pay off their short term debt obli&ations' The second cate&ory is the profitability indicator ratios, %hich incl$de profit mar&in analysis, effecti"e ta6 rate, ret$rn on assets, ret$rn on e7$ity, and ret$rn on capital employed' The third cate&ory incl$des debt ratios, %hich incl$des o"er"ie% of debt, debt ratio, debt+e7$ity ratio, capitalization ratio, interest co"era&e ratio, and cash flo% to debt ratio' The fo$rth cate&ory is the operatin& performance ratios, %hich incl$des fi6ed+asset t$rno"er, sales,re"en$e per employee, and operatin& cycle' The fifth cate&ory incl$des cash flo% indicator ratios, %hich incl$des, operatin& cash, flo%,sales ratio, free cash flo%,operatin& cash ratio, cash flo% co"era&e ratio, and di"idend payo$t ratio' The si6th and final cate&ory is the in"estment "al$ations ratios, %hich incl$des, per share data, price,boo! "al$e ratio, cash flo% co"era&e ratio, price,earnin&s ratio, price,earnin&s to &ro%th ratio, price,sales ratio, di"idend yield, enterprise "al$e m$ltiple