What is Investing? - Undergraduate Investment Society at UCLA

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Transcript What is Investing? - Undergraduate Investment Society at UCLA

Welcome to UIS!
What is UIS?
Who we are
What we do
WHAT WE DON’T
DO
Advise you on your money
Manage a Fund
Hold Recruiting Events
Affect Monetary Policy
Make Money Over Night
This Quarter
Quarterly Stock Trading Challenge
http://www.marketwatch.com/game/undergraduateinvestment-society-f2013-stock-comp
Introduction to
Investing
PRESENTED BY THE UCLA UNDERGRADUATE
INVESTMENT SOCIETY
What is Investing?
Defining Investing
An INVESTMENT is the
current commitment
of money or other
resources in the
expectation of reaping
future benefits.
How do WE Invest?
•Real Assets
The land, buildings, machines, and knowledge
that can be used to produce goods and services.
•Financial Assets
•Securities are no more than sheets of paper or,
more likely, computer entries and do not
contribute directly to the productive capacity of
the economy.
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 three
categories:
 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 Farm
 The Bulls
 The Bears
 The PIGS
Stock Market Concepts
Technical Analysis
Stock Trading Concepts Continued
Fundamental Analysis