PART A BECOMING AN INVESTOR 1
Chapter 1 Deciding to take the plunge 3
Am I ready to start investing? What are my goals?
What is my tolerance for risk? What is my investment strategy?
How will I invest my money? Summary.
Chapter 2 How to buy and sell 17
Types of investments. Choosing a stockbroker.
Opening an account. Placing an order. Settlement and transfer.
Borrowing to invest. Summary.
Chapter 3 How to find information 29
Stockbroker websites. Analyst reports. Newspapers and
magazines. Free websites. Subscription websites. Company information.
Financial indices. Taxation. Summary.
PART B STARTING OUT IN SHARES 41
Chapter 4 Features of shares 43
Ordinary shares. Preference shares. Investing for growth.
Investing for income. Risk and return in shares. Summary.
Chapter 5 Fundamental analysis 59
Financial statements. Operating performance.
Liquidity and solvency. Value indicators. Value versus price.
Special situations. Summary.
Chapter 6 Technical analysis 87
Rationale for technical analysis. Market indicators.
Charting techniques. Moving averages. Oscillators.
Using technical trading systems. Summary.
PART C STARTING OUT IN MANAGED INVESTMENTS 105
Chapter 7 Features of managed investments 107
Pros and cons of managed investments. Single asset funds.
Diversified funds. Exchange traded funds (ETFs).
Listed investment companies (LICs). Unlisted managed funds.
Superannuation funds. Product disclosure statement.
Summary.
Chapter 8 Performance of managed investments 123
Active versus passive fund management. Impact of fees.
Monitoring performance. Risk and return in managed funds.
Australia scorecard. Summary.
PART D OPTIONS AND FUTURES 139
Chapter 9 Exchange traded options 141
Share options. Buying a call. Buying a put. Selling a call.
Selling a put. Combinations. Low exercise price options.
Warrants. Index options. Summary.
Chapter 10 Financial futures 157
Trading in futures. Index futures. Interest rate futures.
Combinations. Summary.
PART E INVESTING IN FIXED INCOME SECURITIES 171
Chapter 11 Features of fixed income securities 173
Role of fixed income investments. Exchange-traded Commonwealth Bonds.
Corporate fixed income securities.
Hybrid securities. Expected yield. Risk in fixed income securities.
Market interest rates. Summary.
Chapter 12 Fixed income investment strategies 191
Inflation and taxes. Passive strategies. Active strategies.
Duration. Convertible notes. Summary.
Glossary 203
Index 215