Faculty Contact Information:
EMail: pryson@faculty.ed.umuc.edu
Contact Hours: TBA
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Course Materials:
Random Walk Down Wallstreet
Edition: 8th
Publisher: Norton
Author: Malkiel
ISBN: 0-393-05782-8
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Course Description:
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MGST 198D: The US Stock Market (1). An explanation of the role and function of the securities markets in the United States. Topics include the organization of the exchanges and the over-the-counter market, characteristics of stocks and bonds as investments, and the role of risk in companies. Students may receive credit for only one of the following courses: MGST 198D or MGST 398D.
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Course Goals/Objectives:
On successful completion of this course, the student should be able to:
- explain the basic nature of the "market" called the US stock market;
- appreciate the importance of the history behind the stock market;
- recognize the difference between different types of stocks, bonds, and mutual funds;
- analyze his/her own financial plan as described in the text;
- comprehend financial information in journals or on-line presentation;
- recognize the complex nature of risk in the stock market/investing world; and
- understand the fundamentals of the global marketplace.
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Course Introduction:
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This course is an introduction into the United States stock market and the complicated world of investing. We will study the nature and operation of the largest "market" in the world. Using the text as a guide, we will discuss the principles of investment, different forms of investment instruments such as stocks, bonds, and mutual funds, the various forms of Individual Retirement Accounts (IRAs), the concepts of risk and return, and general investment strategies. Using the format provided in the text, you will be able to assess your own financial goals and plans. By the end of the course, you will have a solid understanding of the role the stock market plays and how you can be part of this large, complex market.
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Grading Information and Criteria:
The final grade in the course will be based on a quiz worth 30% and a final exam worth 70%.
The following scale will be used:
A ==> 90 - 100%
B ==> 80 - 89%
C ==> 70 - 79%
D ==> 60 - 69%
F ==> Below 60%
The material comes quickly in a weekend format. The student should be prepared to devote time to course study throughout the weekend.
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Other Information:
Any other information the instructor wishes to add. This might include:
* General expectations of students, such as hours per week students should expect to devote to the class
* Turnaround time for faculty to respond to email and return papers
* Unique class procedures or activities (such as cooperative learning exercises, panel presentations, case study methods, class journals or learning logs)
* Supplemental objectives (such as development of skills like teamwork, writing, oral presentation; integration of knowledge on focus topics)
* Optional activities such as study groups
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Project Descriptions:
The capital asset pricing model (CAPM) relates to the risk-return trade-offs of individual assets to market returns. Common stock returns over time have generally been used to test this model since stock prices are widely available and efficiently priced, as are market indexes of stock performance. In theory, the CAPM encompasses all assets, but in practice, it is difficult to measure returns on all types of assets or to find an all encompassing market index.
Assignment: On at least two pages, discuss the components of the Capital Asset Pricing Model and how they interrelate to predict the future return on common stock.
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Academic Policies:
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Cases of plagiarism are handled consistent with current UMUC guidelines. See the UMUC policies at the following URL: http://www.umuc.edu/policy/
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Course Schedule:
Day 1:
The Basics of the Stock Market Chapters 1 - 4
History
Functions
Types of Market Activities
Day 2:
Quiz over Day 1 Material Chapters 10, 12 - 15
Stocks, Bonds, Mutual Funds
IRAs, Risk/Return
Investment Guidelines/Strategies
Final Exam
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Faculty Bio:
Paul D. Ryson
UMUC Instructor, MGST
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