1. Economics 98 / 198 Introduction to Stocks DeCal Lecture 1: Introduction Spring 2008 © | Lawrence Wu www.ocf.berkeley.edu/~jml/decal/

2. Today’s Schedule About Myself Course Objectives Why is investing is important? Course Details (grading, schedule, assignments, etc.) Enrollment / Applications details Q&A

3. About Myself First time facilitator Education Experience

4. Why this class? Why learn about stocks?

5. 1976-2000 InvestmentAverage Annual Return S&P 50011% Small-Cap Stocks12% U.S. Treasury Bonds (short-term)4% U.S. Treasury Bonds (long-term)5% Savings Interest Rate1-3% Inflation2-3% Source: The Motley Fool Guide: How to Start Investing What’s the big deal with investing?

6. +136% in 1 year NASDAQ (1999-2001) Stocks can be very rewarding…

7. 60%+ loss within 1 year NASDAQ (2001-2002) …but very damaging as well

8. Course Objectives Learn basics and terminology of stock investing and financial markets Introduce various strategies for investing Begin to understand how to handle your own personal finances What and how much you learn depends on what you put into the class

9. Course Details Grading / Attendance 2 units, Pass / Not Pass 65% constitutes as a passing grade ALL assignments must be competed to pass Maximum 2 absences Participation & Attendance40% Simulation Project30% Individual Papers15% Quiz15% Late assignments / missed quizzes Late assignments will lose ¼ of grade every week Missed quizzes will have to made up & will lose marks

10. 1/2 short individual paper (2 pages max) Review a class topic and apply to real-world situations News presentation For one week, a group of 3 or 4 will present weekly news relating to stock market Quiz Multiple choice about basics & terminology of stocks Virtual Stock Trading Actively trade and monitor virtual stocks in live markets Paper will be assigned to discuss portfolio and experience 3-5 pages, doubled-spaced, 1-inch margins Course Details Assignments / Exercises

11. Articles from various online stock sites Investor’s Business Daily Motley Fool Investopedia Readings to be completed prior to class Investor’s Business Daily Online Edition Free access to IBD’s online newspaper (Retail $300 / year) Gain exposure to financial news and better understand applications of class topics Course Details Readings

12. Week 1 Introduction Week 2 – 4Basics of Investing Week 5Financial Statements Week 6Pending Guest Speaker Week 7 – 8Investing Strategies Week 9 – 11Stock Chart Analysis Week 12Historical Examples Simulation Discussion Week 13Other Topics / Wrap-Up Course Details Semester Agenda

13. Why Take This Class? Fall 2007 Rating (relative to other Berkeley classes) Class Quality: 8.5 out of 10 Instructor Quality: 9.0 out of 10 Positive testimonials and comments from students (check website for more)

14. Enrollment Maximum class size allotted is 25-30 students in each section Make sure you sign-in!!! (priority given to those students who show up today) Students required to submit application CCN’s and CEC’s distributed to admitted students afterwards

15. Enrollment: Application Application posted on the DeCal posting AND on the course website Open-ended questions Focus on revealing who you are and your motivations to get into this class Avoid cliché responses or motivational quotes; I want to know about YOU Due date: February 2, 11:59PM (Email to stocksdecal2@gmail.com)stocksdecal2@gmail.com - file name: “last name, first name” (Ex. Lee, Jason)

16. Application Notes / Details Specify whether you can attend both sections (this will increase your chances) Level of experience or education WILL NOT be part of the criteria Looking for a sincere interest and a desire to learn and participate Explain YOUR story; this should be differentiated from other candidates Follow instructions!!! (Format, doc name)

17. Next Class Next week’s class will be in 175 Barrows Location subject to change and will be posted on the DeCal site

18. QUESTIONS