Fundamentals of Investments

1. 8 FundamentalsofInvestments C h a p t e r Stock Price Behavior And Market Efficiency Valuation & Management second edition CharlesJ.Corrado BradfordD.Jordan McGraw Hill / Irwin Slides by Yee-Tien (Ted) Fu

2. Wisdom “Don’t try to buy at the bottom and sell at the top. It can’t be done except by liars” Bernard Baruch

3. Technical analysis: techniques for predicting based on historical price and volume behavior and investor sentiment Dow Theory: method fo predicting market direction that relies on the Dow industrial and the Dow transportation averages. Concepts Support level:price or level below which a stock or the market as a whole is unlikely to fall.

4. Resistance level: price or level above which a stock or the market as a whole is unlikely to rise. The Dividend Discount Model Relative strength: a measure of the performance of one investment relative to another. to be paid t years from now Moving average: an average daily price or index level, calculated using a fixed number of previous days' prices or levels , updated each day .

5. Concepts • High-low-close chart: plot of high, low, and closing prices. • Candlestick chart: plot of high, low, open , and closing prices that shows whether the closing price was above or below the opening price . • Point - and - figure chart: technical analysis chart showing only major price moves and their direction .