Types of Securities and Investments Research and Trade #2 Types of Securities and Investments

Stocks Considerations Financial Health Current Projects Leadership Competitors News Dividends

Stocks Fundamental Analysis Price/Equity Ratio: Stock Price/Earnings, useful after earning release. Used to determine under/over valued compared to industry Debt/Equity: Total Debt/Total Equity, doesn’t change that much. A severe change may warrant investigation Cash Flow Models (DCF): Analysis of future cash flows to present day. Used to determine under/over valued vs the future 52 Week Range: Range of stock prices for past year. May indicate over/under valued

Terms in Action

Bonds Considerations Interest (amount paid) Yield (percent paid) Price (inverse relationship with yield) Duration Source Credit Rating Economic Environment

Bonds Types of Bonds Corporate: issued by companies. Usually higher yield. Taxable income. Municipal: issued by cities and states. Non-taxable income. Treasury: issued by national government. Taxable income.

Mutual Funds Considerations Holdings: what is in the portfolio? Fees: what do they charge Strategy: how do they make their money? Liquidity: how often is it traded? Easy to get in/out. Net Assets: the amount of money others have invested Goals: what is their objective? Manager: who is managing?

Other Types of Securities Currency: Foreign, domestic, crypto Hedge Funds: Not as limited as Mutual Funds. Higher entry limit. Derivatives: Options, commodities, swaps Unit Investment Trusts (UITs): Fixed portfolios, must be held for a certain amount of time, usually 15 months  Annuities: has an accumulation and payout phase. Limited investment options, low liquidity.

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