EC 371. Economic Foundation of Investment and Finance I

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This course is primarily about financial investment.

The focus will be on investments in common stock.

The course offers a thorough treatment of the fundamental aspects of financial investments and is comprised of three main parts.

Part one covers the elements of investments, dealing with such topics as the different approaches to investing (fundamental analysis versus more subjective, psychological approaches), how securities are traded and mutual funds.

Part two covers security analysis and deals with the various methods and techniques of estimating the value of a firm's common stock and its bonds.

Part three covers portfolio theory and involves the analysis of risk-and-return aspects of holding a well-diversified portfolio.

An underlying theme of the analysis is that established and well-organised security markets are efficient.

This has crucial implications for the investor, which we will thoroughly analyse.

One aim of this course is to provide the student with a guide for sound investment strategy and the avoidance of serious investment blunders.

Restriction(s): INF 301 or INF 302