Dr.Zakaria Hegazy: Investment Lecture 1

8/8/2019 Dr.Zakaria Hegazy: Investment Lecture 1

http://slidepdf.com/reader/full/drzakaria-hegazy-investment-lecture-1 1/56

Module Code:BFIN04H02

Titl : Inv tm nt

Click to edit Master subtitle style



Welcome





Today’s Overview

9:00 Opening, welcome and course overview

Learning goals of the program

Today’s overviewGetting acquainted

Safe learning environment and agreements

10:00 Chapter one: The Investment Environment

11:00-13:00 2 office hours

14:00 Assignment on today’s Topic.

14:50 Review of the day and the learning process



Who’s Who? Getting

AcquaintedName?

Background…

Hobbies…

Expectations of this course

Etc.



Dr. Zakaria in Brief

Name: Dr. Zakaria S.G. Hegazy, CT, Ph. D, M.A, B.A

Nationality: Egyptian

Tel.: 002-02-23741323

Mobile: 0123741323

E-mail: [email protected]

Website: http://groups.msn.com/z-hegazy/

Current Positions:

International Certified Trainer and HRD consultant (www.ibct-global.com) (USA, Meddle East &North Africa, and Europe)

Director of FLDP center at Helwan University.(www.helwan.edu.eg)

Staff member at the Faculty of Comm. and Busi. Admi.- HelwanUniversity.

Business Development Consultant and Board Member at SaudiEgyptian Holding Group for Investment

mailto:[email protected]

http://groups.msn.com/z-hegazy/

http://www.ibct-global.com/

http://www.helwan.edu.eg/

http://www.helwan.edu.eg/

http://www.ibct-global.com/

http://groups.msn.com/z-hegazy/

mailto:[email protected]





Course PlanWeek Chapters and topics Date1 &2 1. The Investment Environment 8 &15/103&4 2. Markets and Transactions 22 &29/10

5 3. Investment Information and Securities Transactions 5/116&7 4. Return and Risk 12&19/11

8 5. Modern Portfolio Concepts 26/119 6. Common Stocks

3/1210 7. Analyzing Common Stocks 10/1211 8. Stock Valuation 17/12

5th Nov. 2008 midterm class test14th Jan. 2009 Revision21st Jan. 2009 Exam



Type of assessment & contribution to

mark1 one hour midterm class test 30%

Home works, attendance & participation 20%

2-hours unseen examination 50%

Reference

“Fundamentals of Investing” by Gitman, 10th ed.



Acceptance of the General Learning

GoalsUnderstanding the Concept of Investment and its types.

Understanding the investment process.

To learn the basic type of securities markets, orders, and transactions.

Discuss the concept of return and its componentDiscuss the concept of risk and risk assessment.

Review the time value of money concepts.

Understand the portfolio objective and the procedure used to calculate portfolioreturn and risk.

Discuss the basic characteristics of Common stocks, types, and alternativeinvestment strategies of Common Stock.

Discuss different common stock analysis.

Understanding the valuation concepts: Stock Valuation Model and bond valuation.



Chapter1

The InvestmentEnvironment



The InvestmentEnvironmentLearning Goals

1. Understand the term investment and factors used todifferentiate types of investments.

2. Describe the investment process and types of investors.3. Discuss the principal types of investment vehicles.

4. Discuss investing over the life cycle and in different economicenvironments.

5. Understand the popular types of short-terminvestment vehicles.



What is an Investment?

And What is a return? (10minutes)

Procedure:

Let’s be divided into 4 groups

Assign:

●

Presenter● Writer

● Time keeper

● Leader

Discuss with your group (3 minutes)

Present your definition in (1 minute)



What is an Investment?

Investment: any vehicle into which funds can beplaced with the expectation that it will generatepositive income and/or that its value will be preserved

or increased

Return: the reward for owning an investment

Current income

Increase in value



Types of Investments

Investments can be classifiedas:

Securities or Property

Direct or Indirect

Debt, Equity or DerivativeSecurities

Low Risk or High RiskShort-Term or Long-Term

Domestic or Foreign

Workshop

20 minutes

Discuss each of thesetypes with your group(10 minutes)

Present yourexplanation (4 groups

×2.5 minutes)




Securities or Property

Securities: stocks, bonds, options

Real Property: land, buildings

Tangible Personal Property: gold,artwork, antiques

Direct or Indirect

Direct: investor directly acquires a claim

Indirect: investor owns an interest in a professionally managedcollection of securities or properties




(cont'd)Debt, Equity or Derivative Securities

Debt: investor lends funds in exchange for interest income andrepayment of loan in future (bonds)

Equity: represents ongoing ownership in a business or property(common stocks)

Derivative Securities: neither debt nor equity; derive value from anunderlying asset (options)

Low Risk or High Risk

Risk: chance that actual investment returns will differ from thoseexpected




(cont'd)Short-Term or Long-Term

Short-Term: mature within one year

Long-Term: maturities of longer than a year

Domestic or Foreign

Domestic: U.S.-based companies

Foreign: foreign-based companies



Who are Suppliers and

Demanders of Funds?Brainstorming discussion (5 minutes)



Suppliers and Demanders

of FundsGovernment

Projects & operations

Typically net demanders of funds

Business

Investments in production of goods and services

Typically net demanders of funds

IndividualsSome need for loans (house, auto)

Typically net suppliers of funds



Can you imagine the

investment process? Think in terms of systems approach (5 minutes)



Have a nicebreak, we will

start the classafter 2 hours



Morning Review

Welcome and course overview

Learning goals of the course

Getting acquainted and domestic agreements

First Part of Chapter 1

Practical workshop on Investment and Return

Brainstorming and discussing investment types

Discussing Demanders and Suppliers of funds

Raising the question of investment process?? For next hour.





























Imagine the investment

process and complete thefollowing: (30 m)4 Groups (you already know the procedure)

Redraw the following figure and complete the

missed letters. (10 minutes)Present your answer on the sheet (2 minutes)

Compare your answer with other groups (10minutes)

Then, I will explain the figure.



F………Ins……….

D……………

S………………

F………M………..

B………I……….

I………..S……..&…….S…………….C…….U…….P…….F……..

M………..(s….t…)

C………….

(L….M…Investment Process

Direct transactions



Amr

AdhamAlaa

AbdelRahman



Sarah

AyAYomna Eman























Figure 1.1

The Investment Process



Complete the following:

Types of Investors…………………….

Invest for personal financial goals(retirement, house)

………………………..

Paid to manage other people’s money

Trade large volumes of securities

Include: banks, life insurance companies, mutual fundsand pension funds

Think in missing words



Types of Investors

Individual Investors

Invest for personal financial goals(retirement, house)

Institutional Investors

Paid to manage other people’s money

Trade large volumes of securities

Include: banks, life insurance companies, mutual fundsand pension funds



Now I know:

Inv….. And R……

Ty……

D…… and S…..

Fi……ins…..

Fi…….M….

I……. P……

I…….ty….. Which are………………….



Afternoon Review

Welcome and course overview

Learning goals of the course

Getting acquainted and domesticagreements

Investment and its types

Demanders and suppliers of fundsInvestment process



Thanks for your Great Effort

Today!Next week lecture :Making Investment Plans

Steps in Investing

Considering Personal TaxesInvesting Over the life Cycle

Investing in different Economic Environments

Meeting Liquidity Needs

The Role of S-T Vehicle

Popular S-T Investment

Vehicles Investment Suitability E v a l u

a t i o n o f t h

e d a y

Documents

Dr.Zakaria Hegazy: Investment Lecture 1