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Fundamentals of Investments

This chapter cover the basics of the investing process. We begin by describing how you go about buying and selling securities such as stocks and bonds. Then we outline some important consideration and constraints to kêp in mind as you get more involved in the investing process | McGraw Hill Irwin Slides by Yee-Tien Ted Fu @2002 by the McGraw- Hill Companies Inc.All rights reserved. McGraw Hill Irwin 2002 by The McGraw-Hill Companies Inc. All rights reserved. 1 -2 Who Wants To Be A Millionaire 1 -3 McGraw Hill Irwin 2002 by The McGraw-Hill Companies Inc. All rights reserved. Two key observations emerge. There is a reward for bearing risk and at least on average that reward has been substantial. Greater rewards are accompanied by greater risks. T A Brief History of Risk and Return Goal Our goal in this chapter is to see what financial market history can tell us about risk and .