• Home
• Introduction
• Syllabus

Getting Started Begin at the beginning

A Piece of the Action represents the institutional side of stock market investment.

The Mechanics of Investment represents the procedural side of stock market investment.

Investment Strategies represents the analytical side of stock market investment.

• Glossary
• Reading List
• Sitemap
• Coursemap

Lesson 1] The Simulated Account

• 1.1] Establish the Account
• 1.2] UISES is your broker
• 1.3] Spiders and Diamonds
• 1.4] Congratulations! You're an Investor

Lesson 2] Begin with a Business

• 2.1] The Discovery Café
• 2.2] Partnership
• 2.3] Prices
•    2.3.1] Declining Prices
•    2.3.2] Rising Prices
• 2.4] Venture Capital
•    2.4.1] The Private Equity Market
•    2.4.2] The New Partnership
•    2.4.3] Discovery Café
• Case Study:  Apple Computers (AAPL)
• Mathematical Exercise:  Partnerships
• Terms:  Lesson 2
• On-line Exercise:  Yahoo Statistics

Lesson 3] Going Public

• 3.1] Going Public
• 3.2] The Underwriter
•    3.2.1] Divide the Company into Shares
• 3.3] The SEC
•    3.3.1] The SEC: EDGAR
• 3.4] SEC Registration
•    3.4.1] SEC Registration: The Prospectus
•    3.4.2] SEC Registration: The Tombstone
•    3.4.3] SEC Registration: The Road Show
•    3.4.4] SEC Registration: Effective
• 3.5] Setting the Price
• 3.6] IPO
• 3.7] Growth
• Case Study:  IPO: Goldman Sachs (GS)
• Case Study:  Hot IPO: Netscape (NSCP)
• Case Study:  Cold IPO: Cyberian Outpost
• Mathematical Exercise:  Millionaire Math
• Terms:  Lesson 3
• On-line Exercise:  Yahoo Statistics

Lesson 4] Dividends and Splits

• 4.1] Dividends
•    4.1.1] Dividends: Declared
•    4.1.2] Dividends: ExDate
•    4.1.3] Dividends: TimeLine
• 4.2] Splits
•    4.2.1] Splits: Capitalization
•    4.2.2] Splits: TimeLine
• 4.3] Consolidations
• Case Study:  Dell Computers (DELL)
• Case Study:  Berkshire Hathaway (BRKa)
• Mathematical Exercise:  Dividends
• Terms:  Lesson 4

Lesson 5] The Path to the Big Board

• 5.1] Common Shares
•    5.1.1] Common Shares: Share Certificates
•    5.1.2] Common Shares: Book Entry
• 5.2] Settlement
• 5.3] Share Registration
•    5.3.1] Share Registration: Customer Name
•    5.3.2] Share Registration: Street Name
• 5.4] Proxies and Voting
•    5.4.1] Voting
• Terms:  Lesson 5

Lesson 6] Where Buyers and Sellers Meet

• 6.1] Primary Markets
•    6.1.1] Secondary Markets
• 6.2] Bid & Ask
• 6.3] Tick Size
•    6.3.1] Tick Size
•    6.3.2] Tick Size
• 6.4] Bid-Ask Spread
• 6.5] The Trade
•    6.5.1] The Trade
• 6.6] Brokers
• 6.7] Voting
• Terms:  Lesson 6

Lesson 7] Over-The-Counter

• 7.1] The OTC is Pink
• 7.2] Alphabetical order
• 7.3] NASD FINRA
• Mathematical Exercise:  Pink Sheets
• Terms:  Lesson 7

Lesson 8] Nasdaq

• 8.1] NASDAQ
•    8.1.1] Nasdaq
• 8.2] Brokers, Dealers, Market Makers
•    8.2.1] Brokers
•    8.2.2] Dealers
•    8.2.3] Market Makers
•    8.2.4] Brokers, Dealers, Market Makers
• 8.3] Trading on Nasdaq
•    8.3.1] The Nasdaq Terminal
•    8.3.2] Small Cap Stocks
•    8.3.3] Global Select
•    8.3.4] Financial Pages
• 8.4] Ticker Symbols
• 8.5] Volatility
• 8.6] Dividends and Yields
•    8.6.1] Dividends, Yields, and Volatility
• Mathematical Exercise:  Volatility and Risk
• Terms:  Lesson 8
• On-line Exercise:  Nasdaq Interactive Crossword

Lesson 9] The New York Stock Exchange

• 9.1] History of the NYSE
•    9.1.1] History of the NYSE
  1817
•    9.1.2] History of the NYSE
  1830s
•    9.1.3] History of the NYSE
  The Civil War
•    9.1.4] History of the NYSE
  Post-War Expansion
•    9.1.5] History of the NYSE
  Growth and Panic 1873
•    9.1.6] History of the NYSE
  The Panic of 1907
•    9.1.7] History of the NYSE
  The Crash of 1929
•    9.1.8] History of the NYSE
  The Securities Act
•    9.1.9] History of the NYSE
  The Crash of 1987
•    9.1.10] History of the NYSE
  September 11, 2001
• 9.2] A Seat on the Exchange
•    9.2.1] A Seat on the Exchange for Sale
• 9.3] The Ticker
•    9.3.1] The Ticker
• 9.4] Ticker Symbols
•    9.4.1] One, Two, Three Character Tickers
•    9.4.2] Discovery Cafe (DVC)
• 9.5] Trading on the NYSE
•    9.5.1] A Sample Trade I
•    9.5.2] A Sample Trade II
•    9.5.3] A Sample Trade III
• 9.6] The Specialist
• 9.7] Stock Watch
• 9.8] Price Driven versus Order Driven Markets
• 9.9] Circuit Breakers
•    9.9.1] Circuit Breakers this quarter
• Mathematical Exercise:  Market Crash
• Terms:  Lesson 9
• On-line Exercise:  Interactive NYSE Tour

Lesson 10] Trading in the Internet Age

• 10.1] Stock Ownership in America
•    10.1.1] Before the Internet
• 10.2] Bypassing the Broker
   as Investment Advisor
• 10.3] Investment Research
•    10.3.1] Real Time Quotes
•    10.3.2] Investment research: A Yahoo! Example
• 10.4] Online Investing
•    10.4.1] Let the Investor Beware
•    10.4.2] Let the Investor Beware
•    10.4.3] Terror by Anecdote
• 10.5] After Hours Trading
•    10.5.1] ECNs
•    10.5.2] Issues - Liquidity
•    10.5.3] Issues - Liquidity
•    10.5.4] Issues - Conflict of Interest
•    10.5.5] Issues - Fragmentation
• Terms:  Lesson 10
• On-line Exercise:  BATS ECN

Lesson 11] Not Just for Stocks Anymore

• 11.1] Preferred Shares
•    11.1.1] Preferred & Cummulative Preferred
•    11.1.2] Preferred Shares in Bankruptcy
• 11.2] Subscription Rights
•    11.2.1] Discovery Cafe Rishts Issue
•    11.2.2] Exercising Subscription Rights
•    11.2.3] Selling Subscription Rights
•    11.2.4] Pricing Subscription Rights
• 11.3] Warrants
• 11.4] Spiders, Diamonds, and Webs
• 11.5] Closed End Funds
•    11.5.1] NAV: Net Asset Values
•    11.5.2] Mututal Open End Funds
•    11.5.3] Mutual Fund: An Example
•    11.5.4] Mutual Open EndFunds
•    11.5.5] Closed End Funds
•    11.5.6] Closed End Fund: An Example
•    11.5.7] Closed End Funds
• Mathematical Exercise:  DVC Rights
• Terms:  Lesson 11
• On-line Exercise:  Quick Profits

Lesson 12] International Investments

• 12.1] Why International?
• 12.2] Rick's Cafe Americain
•    12.2.1] Buying Rick's Cafe
• 12.3] American Depositary Receipts
•    12.3.1] ADRs
•    12.3.2] ADRs
• 12.4] American Depositary Shares
•    12.4.1] ADSs
• 12.5] Issues in International Investment
• Mathematical Exercise:  Buying ADRs
• Terms:  Lesson 12

Lesson 13] Indices and Indicators

• 13.1] Price Weighted Indices
•    13.1.1] Price Weighted Index: Formula
•    13.1.2] Price Weighted Index: Example I
•    13.1.3] Price Weighted Index: Example II
•    13.1.4] Adjusting for Stock Splits
• 13.2] Value Weighted Indices
•    13.2.1] Value Weighted Index: Formula
•    13.2.2] Value Weighted Index: Example I
•    13.2.3] Value Weighted Index: Example II
•    13.2.4] Adjusting for Stock Splits
•    13.2.5] Value Weighted
• 13.3] UnWeighted Indices
•    13.3.1] Unweighted Index: Formula
•    13.3.2] Unweighted Index: Example I
•    13.3.3] Unweighted Index: Example II
•    13.3.4] Adjusting for Stock Splits
•    13.3.5] Unweighted
• Mathematical Exercise:  A Simple Index
• On-line Exercise:  Interactive Dow Jones

Lesson 14] Brokerage Accounts

• 14.1] Cash Accounts
•    14.1.1] Cash Account: Buy
•    14.1.2] Cash Account: Sell
•    14.1.3] Cash Account: Settlement
• 14.2] OnLine Accounts
•    14.2.1] Online Account: Buy
• 14.3] Choosing a Broker
•    14.3.1] Full Service versus Discount
•    14.3.2] Investigate
• 14.4] Problems and Complaints

Lesson 15] Trade Orders

• 15.1] In the interest of Clarity...
•    15.1.1] ...be clear
• 15.2] Market Orders
•    15.2.1] Market Order - UISES
•    15.2.2] Market Order Disadvantages
• 15.3] Limit Orders
•    15.3.1] Limit Order - UISES
•    15.3.2] Limit Order Disadvantages
•    15.3.3] Limit Order Disadvantages
• 15.4] Stop Orders
•    15.4.1] Stop Order - UISES
•    15.4.2] Stop Order Disadvantages
• 15.5] Stop Limit Orders
•    15.5.1] Stop Limit Order - UISES
•    15.5.2] Stop Limit Order Disadvantages
• Mathematical Exercise:  Figuring Out Trade Orders
• Terms:  Lesson 15

Lesson 16] Margin Transactions

• 16.1] Margin and Equity
• 16.2] Leverage
•    16.2.1] Leveraged Investment
•    16.2.2] Leveraged and Margin
•    16.2.3] Leveraged Losses
• 16.3] Margin Call
• 16.4] Regulation T
• Mathematical Exercise:  Buying on Margin

Lesson 17] Short Selling

• 17.1] First Sell High...
•    17.1.1] Then Buy Low
• 17.2] Dividends
• 17.3] When Things Go Wrong
•    17.3.1] When Things Go Wrong
•    17.3.2] When Things Go Wrong
• 17.4] Some Terminology: Short Interest
•    17.4.1] Some Terminology: Days to Cover
•    17.4.2] Some Terminology: Short Squeeze
• 17.5] Margin Requirements
•    17.5.1] Margin Calculations I
•    17.5.2] Margin Calculations II
• Mathematical Exercise:  A Short Position

Lesson 18] Calculating Returns

• 18.1] Capital Gains
•    18.1.1] Realized Capital Gains
• 18.2] Calculating the Rate of Return
•    18.2.1] Calculating the Rate of Return II
•    18.2.2] Calculating the Rate of Return III
• 18.3] Dividends
• 18.4] Portfolio Returns
•    18.4.1] Portfolio Returns: Example
• 18.5] Holding Period Returns
•    18.5.1] As Time Goes by
• 18.6] Monthly Rates of Return
•    18.6.1] Monthly Rates of Return
• 18.7] Statistical Rates of Return
• 18.8] Time Weighted Rates of Return
• 18.9] Lying with Statistics
•    18.9.1] Lying with Statistics
• Case Study:  Enron (ENRNQ)
• Mathematical Exercise:  Returns on Enron

Lesson 19] Simple Investment Strategies

• 19.1] Buy and Hold
•    19.1.1] Buy ....
•    19.1.2] .... and hold
•    19.1.3] DJIA over the century
• 19.2] Dollar Cost Averageing
•    19.2.1] Dollar Cost Averaging: An Example
•    19.2.2] Dollar Cost Averaging: The Numbers
• 19.3] Average Down
•    19.3.1] Average Down: An Example
•    19.3.2] Average Down: The Numbers
• 19.4] Constant Dollar Investment
•    19.4.1] Constant Dollar: An Example
•    19.4.2] Constant Dollar: An Example
•    19.4.3] Constant Dollar: The numbers

Lesson 20] Fundamental Analysis

• 20.1] Dividend Yield
•    20.1.1] Interpreting the Dividend Yield
•    20.1.2] Dividend Yield and the Business Cycle
•    20.1.3] Business Cycle Investing
• 20.2] Earnings Per Share (EPS)
•    20.2.1] EPS: Primary and Fully Diluted
•    20.2.2] EPS: An Example
•    20.2.3] Interpreting EPS
• 20.3] Manipulating EPS Numbers
•    20.3.1] Manipulating EPS Numbers: Example I
•    20.3.2] Manipulating EPS Numbers: Example II
• 20.4] P/E Ratio
•    20.4.1] High P/E Ratios
•    20.4.2] High P/E Ratios: An Example
•    20.4.3] High P/E Ratios
•    20.4.4] Low P/E Ratios
•    20.4.5] Market P/E Ratios
•    20.4.6] Using P/E Ratios
• 20.5] Calculating P/E Ratios
• 20.6] Market/Book Ratios
•    20.6.1] Calculating Market/Book Ratios
•    20.6.2] Value Stocks
•    20.6.3] Glamour Stocks
• 20.7] Current Ratios
• 20.8] Debt Ratios
• 20.9] Statistics Never Lie
• Case Study:  Microsoft (MSFT)
• Case Study:  Nike (NKE)
• Case Study:  Phillip Morris (MO)

Lesson 21] Technical Analysis

• 21.1] Basic Concepts
• 21.2] Box Scores
•    21.2.1] Box Scores: Example I
•    21.2.2] Box Scores: Example II
• 21.3] The Dow Theory
•    21.3.1] The Dow Theory
•    21.3.2] The Dow Theory: Analogy
•    21.3.3] The Dow over Time
• 21.4] Graphing Techniques
•    21.4.1] Line Chart
•    21.4.2] High Low Close Chart
•    21.4.3] High Low Close Chart
•    21.4.4] Candlestick Chart
• 21.5] Trends
•    21.5.1] Resistance and Support
•    21.5.2] Resistance and Support: Caterpillar (CAT)
•    21.5.3] Secondary Support Lines: Caterpillar (CAT)
• 21.6] Breakouts
•    21.6.1] Trends & Breakouts: General Electric (GE)
•    21.6.2] Breakouts: General Electric (GE)
• 21.7] Transitions
•    21.7.1] Trends & Transitions: Boeing (BA)
•    21.7.2] Double Top: Boeing (BA)
•    21.7.3] September 11, 2001: Boeing (BA)
•    21.7.4] Double Bottom: Boeing (BA)
•    21.7.5] Head and Shoulders: Google (GOOG)
•    21.7.6] Triangles: Exxon Mobil (XOM)
•    21.7.7] Ascending and Descending Triangles
•    21.7.8] Bear and Bull Traps: Exxon Mobil (XOM)
• 21.8] Technical versus Fundamental Analysis
•    21.8.1] The Beginning of Technical Analysis
•    21.8.2] The Beginning of Fundamental Analysis
•    21.8.3] Efficient Markets
•    21.8.4] The Market Crash
•    21.8.5] If He's So Smart Why Isn't He Rich
•    21.8.6] Are Markets Efficient?
•    21.8.7] Conclusion
• Case Study:  Boeing (BA)