1. Review
Fundamental analysis is about determining the value of an asset. The value of an asset is a function of its future dividends or cash flows.
Dividends, earnings, and cash flows of a firm are all tied to the status of the whole economy especially for some firms and industries
So it’s good to start with analyzing the economy, then the industry, then the position of the firm in the industry. We call this top-down approach

2. Chapter 1 Review We Calculate Returns Using Several Methods
The Historical Record
Average Returns: The First Lesson
Calculating Average Returns (The Historical Record)
Risk Premiums
Return Variability: The Second Lesson
Frequency Distributions and Variability
The Historical Variance and Standard Deviation
Normal Distribution
Arithmetic Returns versus Geometric Returns
Dollar Weighted Average Returns
The Risk-Return Trade-Off

3. Chapter 2 Review
The importance of an investment policy statement (IPS)
IPS identifies the objectives (risk & return) of an investor, as well as the constraints the investor faces in achieving these objectives.
The IPS provides an investing “roadmap” and will influence the strategies, type of account, and holdings an investor chooses.
The various types of securities brokers
Choosing a Broker, Online Brokers, Broker-Customer Relations
Brokerage Accounts
Cash Accounts
Margin Accounts and how to calculate initial and maintenance margin
A Note on Annualizing Returns
Short Sales Basics of a Short Sale
Forming a Actual Investment Portfolio

4. Chapter 19 Review Top-Down Analysis Global Macroeconomic Activity
Real GDP, Business Cycles, Economic Indicators
The Global Economy and Stock Return Correlations
The Effects of Exchange Rates on Global Investments
Monitoring Jobs and the Price Level
Labor Market Indicators
The Consumer Price Index
Monetary and Fiscal Policy
Central Bank
Industry Analysis
Identifying Sectors
Porter’s Five Forces

5. Chapter 4 Review Investment Companies and Fund Types
Open-End versus Closed-End Funds
Net Asset Value
Mutual Fund Operations
Mutual Fund Organization and Creation & The Fund Prospectus and Annual Report
Mutual Fund Costs and Fees
Types of Expenses and Fees & Expense Reporting Why Pay Loads and Fees?
Short-Term Funds (Money Market Mutual Funds & Money Market Deposit Accounts)
Long-Term Funds
Stock Funds, l Bond Funds & Stock and Bond Funds
Mutual Fund Objectives: Recent Developments
Mutual Fund Performance
Closed-End Funds, Exchange Traded Funds, and Hedge Funds
Closed-End Funds Performance Information
The Closed-End Fund Discount Mystery
Exchange Traded Funds (ETFs)
Leveraged Funds
Hedge Funds and their Investment Styles

6. Chapter 5 Review Private and Public Equity
Private Equity Funds
The Primary and Secondary Stock Markets
The Primary Market for Common Stock
The Secondary Market for Common Stock
Dealers and Brokers
NYSE and NASDAQ Competitors
Stock Market Information
The Dow Jones Industrial Average
Stock Market Indexes
More on Price-Weighted Indexes
Value-Weighted Indexes

7. Chapter 6 Review Security Analysis: Be Careful Out There
The Dividend Discount Model
Constant Dividend Growth Rate Model
Constant Perpetual Growth
Applications of the Constant Perpetual Growth Model
The Sustainable Growth Rate
The Two-Stage Dividend Growth Model
Discount Rates for Dividend Discount Models
Observations on Dividend Discount Models
Residual Income Model (RIM)
Free Cash Flow Model
Price Ratio Analysis
Price-Earnings Ratios, Price-Cash Flow Ratios, Price-Sales Ratios & Price-Book Ratios
Applications of Price Ratio Analysis