Discuss how Bernie Madoff was able to conduct the fraud? What does it say about human nature?
Discuss the role of the regulatory agencies and the reasons for not detecting the fraud? Analyze the impact of this type of fraud on the U.S. economy.
Companies raise most of their funds through stock sales and bond issues as well as bank loans. This week we explore how stock can be valued and how the stock market operates. Risk is always a factor in investing since there is no such thing as a “sure thing”. We will explore how risk can be measured and managed this week.
STUDY :
- Stocks, Stock Valuation
- Stock Market
- Standard deviation & variance as measure of risk
- Risk diversification
- Beta
- Valuing a business
READ:
1) Module 2: Financial Securities (Modules are located in LEO – Content – Course Content –click on the title of the Module and Read Commentary)
– Valuation and Characteristics of Stocks
2) Course Text : Boundless Finance Online Text
- (A PDF of the Boundless course textbook may also be found in Leo under Content > Syllabus)
- Chapter 7: Stock Valuation
- Chapter 8: Risk and Reward (Sections 1-5)
- 3) TeachMeFinance.com – read topics:
Probability Distribution, http://www.teachmefinance.com/probabilitydistribution.html
Stock Valuation, http://www.teachmefinance.com/stockvaluation.html
http://teachmefinance.com/
