PRESENTATION SUMMARY
Admins Group
A. Bonds
I. Definition and features (Thanh Huyen_ 436)
1.1. Definition
Bonds are a debt instrument issued for a period of ............. with the purpose of ................ by
borrowing. Generally, a bond is a promise to repay ............... along with ............... on a specified
date. When an investor buys a bond, he/she becomes ................. of the issuer.
1.2. Features
- Issuance: ...................... and ........................
- Benefits: safe,....................., ........................... (municipal bonds)
- Drawbacks: ................., risk of issuer going bankrupt, ............................. (long-term bonds)
II. Different types of bonds (Thao Nguyen_535 + My Loan_453)
2.1. Treasury bonds
- A treasury bond is issued by ...................... and is usually denominated in the country's own
currency. Bonds issued by national governments in foreign currencies are referred to as ..................
- Treasury bonds do not have ............ risk and ............... risk considered as .............................
2.2. Corporate bonds
- A corporate bond is a bond that a corporation issues to .............. in order to expand its business.
- 4 types: ............................................................................................................................................
2.3. Convertible bond
Outstanding characteristics:
- ....................................................................
- ....................................................................
- ....................................................................
- ....................................................................
Admins Group
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BONDS & STOCKS
2.4. Who is suitable for investing in bonds?
.............................................................................................................................................................
B. Stocks
I. Definition and features (Thien Hoang_524)
1.1. Definition
Stocks are an instrument that signifies an ...................... position in a corporation and represents a
............... on its proportional share in the corporation ......................................
1.2. Features
- Issuance: ...................... (capital for issuers) ............................. (liquidity for stocks)
- Benefits: possibility of greater returns, ......................., ..........................., ........................
- Drawbacks: ................................, .............................................
II. Different types of stocks (Khanh Tran_548 + Hong Tham_564)
2.1. Common stocks vs. preferred stocks
Criteria
Common stock
Preferred stock
Dividends
Voting rights
Priority of claims
2.2. Other types of stocks
MATCHING
Blue chips stocks
a. Low- priced, highest risks
Penny stocks
b. Being traded below market value
Growth stocks
c. Are purchased when the economy is at the bottom of the
business cycle
Income stocks
d. Are issued by companies resistant to the fluctuations of the
economic cycle
Value stocks
Admins Group
e. Offer a higher dividend in relation to their market price, and
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BONDS & STOCKS
less price fluctuation
Cyclical stocks
f. Hold great potential for appreciation
Defensive stocks
g. Most secure stock, come from profitable, stable, well established companies
h. Dividends are not declared and the money is reinvested to
Speculative stocks
grow the company.
C. Effective investment
I. Mastering Mutual funds (Huyen Tran_547)
1.1. Lending and ownership investments
Should people invest in bonds or stocks?
Consider Lending Investments if ...
Consider Ownership Investments when ...
- You need current income
- .................................................................................
- .........................................................................
- ................................................................................
- .........................................................................
- .................................................................................
1.2. Features of mutual funds
Advantages
Disadvantages
-............................................................................
- Issue of control: ......................................................
- ...........................................................................
- .................................................................................
II. DIY (Chi Cong_510)
1.1. Macro analysis
- The purpose is to identify ................. to your industry that are .....................................................
1.2. Industry analysis
-
It is a tool that facilitates a company's understanding of ..................................................
Industry analysis enables ....................................................................................................................
.............................................................................................................................................................
1.3. Company analysis
- It is a method of ........................................................................, also known as .............................
Admins Group
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BONDS & STOCKS
- Financial ratios:
+ Profitability ratios
Profit margin
= Net Income /.............................
Return on Equity
= .........................../ Owners Equity
Return on Assets
Net Income /............................
+ Liquidity ratios
Current Ratio
= .........................../ Current Liabilities
Quick Ratio
= (...................... - Current Inventory)/ Current Liabilities
+ Solvency ratios
Total Debt to Total Assets
= .........................../.............................
+ Valuation ratios
Price to Earnings
Admins Group
= .........................../ Earnings per Share
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