İntroduction to Business 2 BUS 102 Erlan Bakiev, Ph. D. Zirve University BUS 102

Term Project The reports should provide details on the company’s history, products, competitors, financial and information. In the financial information section, please include copies of the company’s financial statements, and financial situation. You can also report on other issues the company is experiencing as they relate to topics covered in the course. (Please cite references used.)

Term Project All reports should be double spaced, typed reports with one-inch margins and at least 4 pages long (not including the financial statements). Please include each group member’s name, instructor’s name, the course name, the date of the presentation, and the name of the company you chose on the cover sheet of your report.

Securities and Investment Strategies

SecuritiesInvestments StocksStocksMutualFundsMutualFundsBondsBonds

Stock certificate Authorized stock Issued stock Unissued stock Stock split Par value Stocks: Important Terms

Dividends Voting Rights LimitedLiabilityLiquidity CommonStock

Preferred Stock Convertible Convertible Cumulative Cumulative

SecuredBonds Debentures ConvertibleBonds CorporateBonds

InterpretationMoody ’ sS&PInterpretation Highest ratingAaaAAAPrime quality Very strong capacity to payAaAAHigh grade Highest ratingAaaAAAPrime quality Strong capacity to pay; somewhat susceptible to changing business conditions AAUpper-medium grade Very strong capacity to payAaAAHigh grade More susceptible than A rated bonds BaaBBBMedium grade Strong capacity to pay; somewhat susceptible to changing conditions AAUpper-medium grade Somewhat speculativeBaBBSomewhat speculative More susceptible than A rated bonds BaaBBBMedium grade SpeculativeBB Somewhat speculativeBaBBSomewhat speculative Vulnerable to nonpaymentCaaCCCPoor standing;may be in default SpeculativeBB Highly vulnerable to nonpaymentCaCCHighly speculative; often in default Vulnerable to nonpaymentCaaCCCPoor standing; may be in default Bankruptcy petition filed or similar action taken CC Lowest rated; extremely poor chance of ever attaining real investment standing Highly vulnerable to nonpaymentCaCCHighly speculative; often in default Corporate Bond Ratings

U.S. Government Securities and Municipal Bonds Treasury Notes Treasury Bills Treasury Bonds U.S. Savings Bonds

U.S. Government Securities and Municipal Bonds Municipal Bonds General Obligation Bonds Revenue Bonds Capital Gains

Retirement of Debt Serial bonds Term bonds Sinking fund Callable bonds

Mutual Funds Load Funds Open-EndFundsOpen-EndFunds No-LoadFundsNo-LoadFunds Closed-EndFundsClosed-EndFunds Diversify Investments Manage Investments Pool Money Spread Risk

Types of Mutual Funds Money-MarketGrowthBalancedIncome GlobalSectorInternationalIndex

Options and Futures RightBuyer’s BeliefSeller’s Belief Buy Stock At Fixed Price Until Expiration Date Price Of Underlying Stock Will Increase Price Of Underlying Stock Will Decrease Sell Stock At Fixed Price Until Expiration Date Price Of Underlying Stock Will Decline Price Of Underlying Stock Will Increase Call Option Put Option

Speculating in Commodities Agricultural Products Raw Materials

Securities Market SecondarySecondary SecuritiesExchangesSecuritiesExchanges PrimaryPrimary InitialOfferingsInitialOfferings

Types of Stock Exchanges AuctionDealerElectronic NYSENASDAQECNs

Old Way New Way Specialists and Market Makers ElectronicCommunications Networks (ECNs) Buying and Selling Securities Trading Floor Trading Floor Stock Specialist Stock Specialist Computer Computer Market Maker Market Maker Computer Computer Stock Broker Stock Broker Buying on The NYSE Buying on The NASDAQ Buying on An ECN

Ask These Questions Before You Invest 1.Is the investment registered with the SEC? 2.Have you read the audited financial statements? 3.Is a registered broker offering the investment? 4.What’s in it for the person touting the investment? 5.Should you trust /bulletin board advice?

Ask These Questions Before You Invest 6.Are you being pressured to act? 7.Does the investment promise you’ll get rich quick? 8.Does the investment match your objectives? 9.How easy would it be to sell your investment later? 10.Does the investment originate overseas?

Investment Objectives GrowthIncome Investment Safety Investment Liquidity Tax Concerns

Investment Portfolio Rate of Return DiversificationAsset Allocation Diverse Industries Global Investments Different Investments Cash Instruments Bonds Common Stocks

Market Order Limit Order Day Order Margin Trading Stop Order Open Order Discretionary Order Short Selling Buying and Selling Securities

Rising Stock Market Falling Stock Market Analyzing Financial News

Watching Market Indexes and Averages Dow Jones Industrial Average (DJIA)Dow Jones Industrial Average (DJIA) Standard and Poor’s 500 (S&P 500)Standard and Poor’s 500 (S&P 500) Wilshire 5000Wilshire 5000 NASDAQ Composite IndexNASDAQ Composite Index Nikkei 225 IndexNikkei 225 Index FTSE 100 IndexFTSE 100 Index

Interpreting Financial News Stock Exchange Reports Bond Quotation Tables Mutual Fund Quotations