Course Outline - Complete

Section I - Introduction to Financial Markets

  • Chapter 1 - Financial Markets in the Economy
    • 1.1 - Circular Flow in the Economy
    • 1.2 - What Are Markets?
    • 1.3 - The Returns Mechanism
    • 1.4 - Efficient Markets Hypothesis
    • 1.5 - Markets - Investments or Gambling?

Section II - Portfolio Theory

  • Chapter 2 - Measuring Portfolio Return
    • 2.1 - Holding Period Return
    • 2.2 - Cash Flows Adjusted Rate of Return
    • 2.3 - Statistical Rate of Return
    • 2.4 - Time Weighted Rate of Return
    • 2.5 - Internal Rate of Return
    • Model 2.1 - Cash Flows Adjusted Rate of Return
    • Model 2.2 - Internal Rate of Return
  • Chapter 3 - Measuring Portfolio Risk
    • 3.1 - Risk and Uncertainty
    • 3.2 - Standard Deviation
    • Model 3.1 - Risk and Return
  • Chapter 4 - Diversification
    • 4.1 - How Diversification Reduces Risk
    • 4.2 - Efficient Portfolio Frontier
    • 4.3 - Correlation and Diversification
    • 4.4 - The Risk Free Asset and Leverage
    • 4.5 - Limits to Diversification
    • 4.6 - The Market Model
    • 4.7 - The Portfolio Beta
    • Model 4.1 - Portfolio Standard Deviation
    • Model 4.2 - The Efficient Portfolio Frontier
  • Chapter 5 - Modern Portfolio Theory
    • 5.1 - Capital Asset Pricing Model (CAPM)
    • 5.2 - Indexing
    • 5.3 - The Security Market Line (SML)
    • 5.4 - Identifying Abnormal Returns
    • Model 5.1 - Capital Asset Pricing Model

Section III - Equity and Equity Markets

  • Chapter 6 - Primary Equity Markets
    • 6.1 - Private Equity Market
    • 6.2 - Public Equity Market
    • 6.3 - Initial Public Offering (IPO)
  • Chapter 7 - Secondary Equity Markets
    • 7.1 - The Stock Exchange
    • 7.2 - Brokers, Dealers, market Makers, and Specialists
    • 7.3 - The New York Stock Exchange
    • 7.4 - The American Stock Exchange
    • 7.5 - NASDAQ
    • 7.6 - Electronic Communication Networks (ECNs)
    • 7.7 - Issues in the Secondary Markets
  • Chapter 8 - Owning and Trading Securities
    • 8.1 - Trade Orders
    • 8.2 - Dividends & Splits
    • 8.3 - Margin Transactions
    • 8.4 - Short Sales
    • 8.5 - Graphical Representation
    • 8.6 - Stock Market Indices
    • Model 8.1 - Index Calculation
  • Chapter 9 - Regulation of Equity Markets
    • 9.1 - The Era Without Regulation: 1790-1932
    • 9.2 - The Era of Federal Regulation: 1932-1999
    • 9.3 - The Era of Deregulation: 1999-

Section IV - Money Markets

  • Chapter 10 - Money Markets
    • 10.1 - Discount Paper
    • 10.2 - Interest-at-Maturity
  • Chapter 11 - Money Market Instruments
    • 11.1 - Treasury Bills
    • 11.2 - Commercial Paper
    • 11.3 - Bankers' Acceptances
    • 11.4 - Certificates of Deposit
    • 11.5 - Federal Funds
    • 11.6 - Repurchase Agreements

Section V - Debt Markets

  • Chapter 12 - Prices and Yields
    • 12.1 - Structure of a Bond
    • 12.2 - Price Yield Determination
    • 12.3 - Price Yield Curve
    • 12.4 - Yields
  • Chapter 13 -Buying and Selling Bonds
    • 13.1 - Settlement Date
    • 13.2 - Accrued Interest
    • 13.3 - Accrued Interest (Actual)
    • 13.4 - Accrued interest (30/360)
    • Model 13.1 - Bond Calculator
  • Chapter 14 - The Term Structure of Interest Rates
    • 14.1 - The Yield Structure
    • 14.2 - Interest Rates Under Certainty
    • 14.3 - Interest Rates Under Uncertainty
    • 14.4 - Partial Periods and Compounding
    • 14.5 - Deriving the Term Structure from Coupon Bonds
  • Chapter 15 - Duration
    • 15.1 - Duration, Income, and Capital Gain
    • 15.2 - Price Volatility
    • 15.3 - Calculating Duration I
    • 15.4 - Calculating Duration II
    • 15.5 - Volatility and Modified Duration
    • 15.6 - Portfolio Duration
    • Model 15.1 - Duration & Convexity
    • Model 15.2 - Modified Duration
  • Chapter 16 - Immunization
    • 16.1 - Immunizing a Bond Portfolio
    • 16.2 - The Failure to Immunize
    • 16.3 - Immunizing the Portfolio
    • 16.3 - Immunization in Practice

Section VI - Debt Market Instruments

  • Chapter 17 - Government Bonds
    • 17.1 - Treasury Securities
    • 17.2 - Pricing Treasury Notes and Bonds
    • 17.3 - Federal Agencies
    • 17.4 - International Government Bonds
  • Chapter 18 - Municipal Bonds
    • 18.1 - Types of Municipal Bonds
    • 18.2 - Issuing Agencies
    • 18.3 - Tax Treatment
    • 18.4 - Municipal Bond Markets
  • Chapter 19 - Corporate Bonds
    • 19.1 - Corporate Bond Indenture
    • 19.2 - Call Provisions
    • 19.3 - The Risk Structure
    • 19.4 - Convertible Bonds
    • 19.5 - Trading in Corporate Bonds
    • 19.6 - Bond Market Indices
    • 19.7 - Medium Term Notes
    • 19.8 - Preferred Stock
    • 19.9 - Warrants
    • 19.10 - Foreign Bonds
  • Chapter 20 - Asset Backed Securities
    • 20.1 - Investment Companies
    • 20.2 - Unit Investment Trusts
    • 20.3 - Open-End Investment Companies (Mututal Funds)
    • 20.4 - Closed-End Investment Companies
    • 20.5 - Mortgage Backed Securities
    • 20.6 - Securitization
    • 20.7 - Prepayment Risk
    • 20.8 - Collaterized Mortgage Obligations
    • 20.9 - Other Securitized Assets

Section VII - Futures Markets

  • Chapter 21 - Futures Contracts and Clearing
    • 21.1 - Forward Contracts
    • 21.2 - Futures Contracts
    • 21.3 - Futures Trading
    • 21.4 - Futures Exchanges
    • 21.5 - The Clearinghouse
    • 21.6 - Unwinding a Futures Position
    • 21.7 - Price Limits
  • Chapter 22 - Hedges, Speculation, and Arbitrage
    • 22.1 - Basis
    • 22.2 - Constructing a Hedge
    • 22.3 - Textbook Hedge
    • 22.4 - Basis Risk
    • 22.5 - Spreads and Cross Hedges
    • 22.6 - Speculation
    • 22.7 - Spot-Futures Arbitrage
  • Chapter 23 - Financial Futures
    • 23.1 - Hedging with Interest Rate Futures
    • 23.2 - Speculating with Interest Rate Futures
    • 23.3 - Speculation with Index Futures
    • 23.3 - Hedging with Index Futures
    • 23.4 - Arbitrage with Index Futures
    • 23.5 - Hedging with Weather Futures
    • 23.6 - Futures Regulation

Section VIII - Options Markets

  • Chapter 24 - Options
    • 24.1 - Options Concepts
    • 24.2 - Stock Options
    • 24.3 - Options Markets
    • 24.4 - Buying Call Options
    • 24.5 - Writing Call Options
    • 24.6 - Buying Put Options
    • 24.7 - Writing Put Options
    • 24.8 - Index Options
    • 24.9 - Interest Rate Options
    • Model 24.1 - Option Model
  • Chapter 25 - Options Strategies
    • 25.1 - Covered Call
    • 25.2 - Protective Put
    • 25.3 - Stradddle
    • 25.4 - Strangle
    • 25.5 - Spread
    • 25.6 - Collar
    • 25.7 - Synthetic Stock
    • 25.8 - Deconstruction
  • Chapter 26 - Pricing Options
    • 26.1 - Binomial Pricing Model
    • 26.2 - Black-Scholes Option Pricing Model
    • 26.3 - Put - Call Parity Relationship
    • 26.4 - Determinants of Value
    • 26.5 - Implied Volatility
    • Model 26.1 - Black-Scholes Options Pricing Model

Section IX - Market Innovations

  • Chapter 27 - Swap Agreements
    • 27.1 - Interest Rate Swap Agreements
    • 27.2 - Currency Swaps
    • 27.3 - Total Return Swaps
    • 27.4 - Credit Default Swaps
    • 27.5 - Interest Rate Agreements
  • Chapter 28 - Market Innovations
    • 29.1 - Pollution Allowances
    • 29.2 - Drop Options