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Personal Finance: An Integrated Planning Approach Winger & Frasca Chapter 11  Common Stock
Major Topics ,[object Object],[object Object],[object Object]
Characteristics of Common Stock ,[object Object],[object Object],[object Object],[object Object]
Shareholders’ Rights ,[object Object],[object Object],[object Object],[object Object]
Shareholders Come Last ,[object Object],[object Object],[object Object],[object Object]
An Example of Earnings Distribution ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Distributions to Common Shareholders ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Stock Dividends and Splits ,[object Object],[object Object],[object Object]
Opportunities in Common Stocks ,[object Object],[object Object],[object Object],[object Object],[object Object]
Example of a Stock Quotation ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Quote Continued
Fundamental Analysis of Common Stocks ,[object Object],[object Object],[object Object]
Determining Expected Return ,[object Object],[object Object],[object Object],[object Object],[object Object]
Calculating Expected Return ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Review of CAPM Approach ,[object Object],[object Object],[object Object]
Fig. 11.5 Comparing Mead’s required rate of return with its expected rate of return, 1998 Required Rate of Return Expected  Rate of Return
Fig. 11.5 Comparing Mead’s required rate of return with its expected rate of return, 1998 Required rate of return  Expected  rate of return  = 12.9% = 11.5% Alpha  = - 1.1% Sell
Price-To-Earnings Analysis ,[object Object],[object Object],[object Object],[object Object],[object Object]
Finding P/E Ratios ,[object Object],[object Object],[object Object],[object Object],[object Object]
Using Book Value ,[object Object],[object Object],[object Object],[object Object]
The Market-to-Book Ratio ,[object Object],[object Object],[object Object]
The PEG Ratio ,[object Object],[object Object],[object Object]
Technical Analysis ,[object Object],[object Object],[object Object],[object Object]
Pressure Indicators ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
A Time Graph Support Line Resistance Line 1999 2000 Break Out Price Volume
Point-and-Figure Graph x x x o o o x x x x o o x x x x o o o o x x x x x x P r i c e x’s record price increases; o’s record price decreases; only price changes greater than a pre-set amount are recorded Time
Calculating a 3-Day Moving Average ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
How Useful Is Technical Analysis? ,[object Object],[object Object],[object Object],[object Object]
Next Chapter 12 Fixed-Income Securities

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Dividends

  • 1. Personal Finance: An Integrated Planning Approach Winger & Frasca Chapter 11 Common Stock
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  • 15. Fig. 11.5 Comparing Mead’s required rate of return with its expected rate of return, 1998 Required Rate of Return Expected Rate of Return
  • 16. Fig. 11.5 Comparing Mead’s required rate of return with its expected rate of return, 1998 Required rate of return Expected rate of return = 12.9% = 11.5% Alpha = - 1.1% Sell
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  • 24. A Time Graph Support Line Resistance Line 1999 2000 Break Out Price Volume
  • 25. Point-and-Figure Graph x x x o o o x x x x o o x x x x o o o o x x x x x x P r i c e x’s record price increases; o’s record price decreases; only price changes greater than a pre-set amount are recorded Time
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  • 28. Next Chapter 12 Fixed-Income Securities