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Module Code:
BFIN04H02
Welcome
Today’s Overview
9:00 Opening, welcome and course overview
Learning goals of the program
Today’s overview
Getting acquainted
Safe learning environment and agreements
10:00 Chapter one: The Investment Environment
11:00-13:00 2 office hours
14:00 Assignment on today’s Topic.
14:50 Review of the day and the learning process
Who’s Who? Getting
Acquainted
Name?
Background…
Hobbies…
Expectations of this course
Etc.
Dr. Zakaria in Brief
Name: Dr. Zakaria S.G. Hegazy, CT, Ph. D, M.A, B.A
Nationality: Egyptian
Tel.: 002-02-23741323
Mobile: 0123741323
E-mail: Hegzak@Hotmail.com
Website: http://groups.msn.com/z-hegazy/
Current Positions:
International Certified Trainer and HRD consultant (
www.ibct-global.com) (USA, Meddle East &North Africa, and Europe)
Director of FLDP center at Helwan University.(www.helwan.edu.eg)
Staff member at the Faculty of Comm. and Busi. Admi.- Helwan
University.
Business Development Consultant and Board Member at Saudi
Egyptian Holding Group for Investment
 Course Plan
Week Chapters and topics
Date
1 &2 1. The Investment Environment
8 &15/10
3&4 2. Markets and Transactions
22 &29/10
5 3. Investment Information and Securities Transactions
5/11
6&7 4. Return and Risk
12&19/11
8 5. Modern Portfolio Concepts
26/11
9 6. Common Stocks
3/12
10 7. Analyzing Common Stocks
5th11 Nov. 2008 midterm class test
10/12
8. Stock Valuation
14th Jan. 2009 Revision 17/12
21st Jan. 2009 Exam
Type of assessment & contribution to
mark
1 one hour midterm class test 30%
Home works, attendance & participation 20%
2-hours unseen examination 50%

Reference
“Fundamentals of Investing” by Gitman, 10th ed.
Acceptance of the General Learning
Goals
Understanding the Concept of Investment and its types.
Understanding the investment process.
To learn the basic type of securities markets, orders, and transactions.
Discuss the concept of return and its component
Discuss the concept of risk and risk assessment.
Review the time value of money concepts.
Understand the portfolio objective and the procedure used to calculate portfolio
return and risk.
Discuss the basic characteristics of Common stocks, types, and alternative
investment strategies of Common Stock.
Discuss different common stock analysis.
Understanding the valuation concepts: Stock Valuation Model and bond valuation.
Chapter
1
The Investment
Environment
The Investment
Environment
Learning Goals
1. Understand the term investment and factors used to
differentiate types of investments.
2. Describe the investment process and types of investors.
3. Discuss the principal types of investment vehicles.
4. Discuss investing over the life cycle and in different economic
environments.
5. Understand the popular types of short-term
investment vehicles.
What is an Investment?
And What is a return? (10
Procedure:
minutes) Let’s be divided into 4 groups
Assign:
● Presenter
● Writer
● Time keeper
● Leader
Discuss with your group (3 minutes)
Present your definition in (1 minute)
What is an Investment?
Investment: any vehicle into which funds can be
placed with the expectation that it will generate
positive income and/or that its value will be preserved
or increased
Return: the reward for owning an investment
Current income
Increase in value
Types of Investments
Investments can be classified Workshop
as:
20 minutes
Securities or Property
Discuss each of these
Direct or Indirect types with your group
(10 minutes)
Debt, Equity or Derivative
Securities Present your
Low Risk or High Risk explanation (4 groups
×2.5 minutes)
Short-Term or Long-Term
Domestic or Foreign
Types of Investments
Securities or Property
Securities: stocks, bonds, options
Real Property: land, buildings
Tangible Personal Property: gold,
artwork, antiques
Direct or Indirect
Direct: investor directly acquires a claim
Indirect: investor owns an interest in a professionally managed
collection of securities or properties
Types of Investments
(cont'd)
Debt, Equity or Derivative Securities
Debt: investor lends funds in exchange for interest income and
repayment of loan in future (bonds)
Equity: represents ongoing ownership in a business or property
(common stocks)
Derivative Securities: neither debt nor equity; derive value from an
underlying asset (options)
Low Risk or High Risk
Risk: chance that actual investment returns will differ from those
expected
Types of Investments
(cont'd)
Short-Term or Long-Term
Short-Term: mature within one year
Long-Term: maturities of longer than a year
Domestic or Foreign
Domestic: U.S.-based companies
Foreign: foreign-based companies
Who are Suppliers and
Demanders of Funds?
Brainstorming discussion (5 minutes)
Suppliers and Demanders
of Funds
Government
Projects & operations
Typically net demanders of funds
Business
Investments in production of goods and services
Typically net demanders of funds
Individuals
Some need for loans (house, auto)
Typically net suppliers of funds
Can you imagine the
investment process?
Think in terms of systems approach (5 minutes)
Have a nice
break, we will
start the class
after 2 hours
Morning Review
Welcome and course overview
Learning goals of the course
Getting acquainted and domestic agreements
First Part of Chapter 1
Practical workshop on Investment and Return
Brainstorming and discussing investment types
Discussing Demanders and Suppliers of funds
Raising the question of investment process?? For next hour.
Imagine the investment
process and complete the
4 Groups (you already know the procedure)
following: (30 m)
Redraw the following figure and complete the
missed letters. (10 minutes)
Present your answer on the sheet (2 minutes)
Compare your answer with other groups (10
minutes)
Then, I will explain the figure.
 F………
Ins……….
B………
I……….
I………..
S……..&…….
S…………….
C…….U…….
P…….F……..
Direct transactions
S………… D…………
…… …

F………M………..
M………..
(s….t…)
C………….
Investment Process
(L….M…
 Abdel Adham
Alaa Rahman
Amr
 Yomna Eman
AyA

Sarah
Figure 1.1
The Investment Process
Complete the following:
Types of Investors
Think in missing words
…………………….
Invest for personal financial goals
(retirement, house)
………………………..
Paid to manage other people’s money
Trade large volumes of securities
Include: banks, life insurance companies, mutual funds
and pension funds
Types of Investors
Individual Investors
Invest for personal financial goals
(retirement, house)
Institutional Investors
Paid to manage other people’s money
Trade large volumes of securities
Include: banks, life insurance companies, mutual funds
and pension funds
Now I know:
Inv….. And R……
Ty……
D…… and S…..
Fi……ins…..
Fi…….M….
I……. P……
I…….ty….. Which are………………….
Afternoon Review
Welcome and course overview
Learning goals of the course
Getting acquainted and domestic
agreements
Investment and its types
Demanders and suppliers of funds
Investment process
Thanks for your Great Effort
Today!
Next Investment
Making week lecture
Plans :
Steps in Investing
Considering Personal Taxes
Investing Over the life Cycle
ay
Investing in different Economic Environments e d
Meeting Liquidity Needs fth
n o
The Role of S-T Vehicle
ti o
Popular S-T Investment lu a
v a
E
Vehicles Investment Suitability