COLLEGE: Mission SUBJECT (DISCIPLINE) NAME): Finance COURSE NUMBER: 002
Los Angeles Community College District
COURSE OUTLINE
(Replaces PNCR and Course Outline)
Section I: Basic Course Information
OUTLINE STATUS:
1. COLLEGE:
2. SUBJECT (DISCIPLINE) NAME[1]): Finance
(40 characters, no abbreviations
3. COURSE NUMBER: 002
4. COURSE TITLE: Investments
5. UNITS: 3
6. CATALOG COURSE DESCRIPTION -- Provide a description of the course, including an overview of the topics covered:
A survey of the range of investment opportunities available and their characteristics. Included are stocks, options, commodities, bonds, government securities, real estate and savings. Includes investment objectives, personal portfolio and administration.7. CLASS SCHEDULE COURSE DESCRIPTION -- Provide a brief description of the course, including an overview of the topics covered:
Description should match number 6 and have a forty word limit.A survey of the range of investment opportunities available and their characteristics. Included are stocks, options, commodities, bonds, government securities, real estate and savings. Includes investment objectives, personal portfolio and administration.8. INITIAL COLLEGE APPROVAL DATE:
9. UPDATES (check all applicable boxes) – Identify the area(s) being updated/changed from the current course
outline that is on file in Academic Affairs:
Content/Objectives Course Title / Unit Value
Prerequisite / Corequisite / Advisory Districtwide Course Attributes
Other (describe) Course Description
10. CLASS HOURS:
“Standard Hours” per Week (based on 18 weeks) / Total Hours per Term (hrs per week x 18) / UnitsLecture: / 3.00 / 54.00 / 3.00
Lab/activity (w/ homework):
Lab/activity (w/o homework):
Total: / 3.00 / 54.00 / 3.00
Note: The Carnegie Rule and Title 5, section 55002 sets forth the following minimum standards: 1 unit = 1 hour lecture per week, 2 hours homework per week; OR 2 hours per week of lab with homework; OR 3 hours of lab per week without homework. The hours per week are based on a standard 18-week calendar. Lecture also includes discussion and/or demonstration hours, laboratory includes activity and/or studio hours.
11. PREREQUISITES, COREQUISITES, ADVISORIES ON RECOMMENDED PREPARATION, and LIMITATION ON ENROLLMENT
Note: The LACCD’s Policy on Prerequisites, Corequisites and Advisories requires that the curriculum committee take a separate action verifying that a course’s prerequisite, corequisite or advisory is an “appropriate and rational measure of a student’s readiness to enter the course or program” and that the prerequisite, corequisite or advisory meets the level of scrutiny delineated in the policy.
. Prerequisites: (If Yes, complete information below)
Subject / Number / Course Title / Units / Validation Approval Date (official use only)_eitherandorend
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. Corequisite: (If Yes, complete information below)
Subject / Number / Course Title / Units / Validation Approval Date (official use only)_eitherandorend
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. Advisories: (If Yes, complete information below)
Subject / Number / Course Title / Units / Validation Approval Date (official use only)_eitherandorend
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12. REPETITIONS -- Number of times course may be repeated for credit (three maximum): 0 (see: Section V, #9)
13. OTHER LIMITATIONS ON ENROLLMENT (see Title 5, Section 58106 and Board Rule 6803 for policy on allowable limitations. Other appropriate statutory or regulatory requirements may also apply):
Section II: Course Content and Objectives
1. COURSE CONTENT AND OBJECTIVES:
COURSE CONTENT AND SCOPE –Lecture:If applicable, outline the topics included in the lecture portion of the course (outline reflects course description, all topics covered in class). / Hours per topic / COURSE OBJECTIVES - Lecture (If applicable):
Upon successful completion of this course, the student will be able to… (Use action verbs – see Bloom’s Taxonomy below for “action verbs requiring cognitive outcomes.”)
PREPARING TO INVEST
Topic 1: The Investment E nviornment (3Hrs.)
Topic 2: Markets and Transactions (3Hrs.)
Topic 3: Online Information and Investing (3Hrs.)
IMPORTANT CONCEPTUAL TOOLS Topic 4: Return and Risk (6Hrs.)
Topic 5: Modern Portfolio Concepts (6Hrs.)
INVESTING IN COMMON STOCKS
Topic 6: Common Stocks (3Hrs.)
Topic 7: Analyzing Common Stocks (3Hrs.)
Topic 8: Stock Valuation and Market Price Behavior (4Hrs.)
INVESTING IN FIXED-INCOME SECURITIES Topic 9: Fixed-Income Securities (3Hrs.)
Topic 10: Preferred Stocks and Convertible Securities (3Hrs.)
PORTFOLIO MANAGEMENT Topic 11: Mutual Funds: Professionally Managed Portfolios (3Hrs.)
Topic 12: Managing Your Own Portfolio (3Hrs.)
DERIVATIVE SECURITIES Topic 13: Options: Puts, Calls and Warrants (3Hrs.)
Topic 14: Commodities and Financial Futures (3Hrs.)
Four examinations and Project assignment (individual or team) are given to evaluate critical and practical thinking. Exams consist of short essay answers (5Hrs.). / The student will be able to:
Describe the investment process, the principal types of investors and investment vehicles, and investing over the lifecycle in different economic environments.
Identify the basic types of securities markets and explain the initial public offering(IPO) process. Explain the characteristics of organized securities exchanges, the over-the-counter markets, and the basic types of
securities transactions.
Discuss the pros and cons of using the Internet as an investment tool, Identify the major types and sources of investment information. Explain the roles of stockbrokers, the uses of market averages and indexes, and the basic types of orders.
Express why return is important. Discuss the time value of money, the real, risk-free and required returns, the holding period, the key sources of risk, the risk of a single asset, risk assessment and the steps that combine return and risk.
Explain portfolio management objectives and procedures used to calcuate return and standard deviation of a portfolio. Describe the capital asset pricing model(CAPM), the traditional and modern approaches to portfolio management you should use. Demonstrate why and how investors use an asset allocation
scheme to construct an investment portfolio.
Explain the investment appeal of common stocks and why individuals like to invest in them. Describe basic characteristics of common stocks, common stock dividends and types and uses of common stock.
Discuss security, economic, industry, and fundamental analysis and note how and why they are used.
Explain the role that a company's future plays in the stock valuation process and the different types of stock dividend valuation models(DVM) as well as alternatives to the DVM. Describe the purpose and approaches to technical analysis. Explain the random walk and efficient market hypotheses and the challenges these theories hold for the stock valuation process.
Explain the essential attributes of bonds and why invest in bonds, the market for debt securities, bond ratings, quotes, valuation, and investment strategies.
Describe the basic features of preferred stocks and convertible securities and how to measure the value of these securities, and the different investment strategies.
Describe the basic features of mutual funds, types of investment companies, mutual funds, fees, expenses and services.
Construct portfolios with asset allocations and risk-return consistent with the investor's objectives. Assess portfolio performance and explain the logic of formula plans of portfolio management.
Discuss the basic investment charactertics of options, puts, calls and stock warrants and describe the trading strategies of these investment vehicles.
Describe the essential features of a futures contract, the futures market. the role that hedgers and speculators play in the future market, the cmmodities seqment, and the trading techniques of these investment vehicles.
Total Lecture hours* / 54.00
COURSE CONTENT AND SCOPE -- Laboratory:
If applicable, outline the topics included in the laboratory portion of the course (outline reflects course description, all topics covered in class). / Hours per Topic / COURSE OBJECTIVES - Laboratory (If applicable):
Upon successful completion of this course, the student will be able to… (Use action verbs – see Bloom’s Taxonomy below for “action verbs requiring cognitive outcomes.”)[2]
Total Lab hours*
*Total lecture and laboratory hours (which include the final examination) must equal totals on page 1.
Bloom’s Taxonomy
simple skills <------> complex skillsCritical Thinking
Knowledge
define
repeat
record
list
recall
name
relate
underline
/ Comprehension
translate
restate
discuss
describe
recognize
explain
express
identify
locate
report
review
tell
/ Application
interpret
apply
employ
use
demonstrate
dramatize
practice
illustrate
operate
schedule
shop
sketch
/ Analysis
distinguish
analyze
differentiate
appraise
calculate
experiment
test
compare
contrast
criticize
diagram
inspect
debate
inventory
question
relate
solve
examine
categorize / Synthesis
compose
plan
propose
design
formulate
arrange
assemble
collect
construct
create
set up
organize
prepare / Evaluation
judge
appraise
evaluate
rate
compare
value
revise
score
select
choose
assess
estimate
measure
2. REQUIRED TEXTS:
Provide a representative list of textbooks and other required reading; include author, title and date of publication:
Fundamental of Investing, Ninth Edition, by Lawrence and Michael D. Joehnk, Pearson Addison Wesley Publishing, 2005.3. SUPPLEMENTARY READINGS:
Reading assignments may include, but are not limited to the following:
The Wall Street Journal , Barron's publications and Investor's Business Daily publications.4. WRITING ASSIGNMENTS:
Title 5, section 55002 requires grades to be “based on demonstrated proficiency in subject matter and the ability to demonstrate that proficiency, at least in part, by means of essays or, in courses where the curriculum committee deems them to be appropriate, by problem solving exercises or skills demonstrations by students.” Writing assignments in this course may include, but are not limited to the following:
A term paper (12-15 page) on any related financial information to the chapter topics.5. REPRESENTATIVE OUTSIDE ASSIGNMENTS:
Out of class assignments may include, but are not limited to the following:
(!) Explain what should an investor establish first before developing and executing an investment program? And, describe the steps in investing and types of investors.(2) Discuss the most common online and traditional sources of investment information on economic and current events, industries and companies and prices.
(3) Discuss the principal types of short and long-term investment vehicles.
6. REPRESENTATIVE ASSIGNMENTS THAT DEMONSTRATE CRITICAL THINKING:
Title 5, section 55002(a) requires that a degree-applicable course have a level of rigor that includes “critical thinking and the understanding and application of concepts determined by the curriculum committee to be at college level”. Critical thinking may include, but is not limited to analysis, synthesis, and evaluation. Provide examples of assignments that demonstrate critical thinking.
To evaluate critical thinking performance during the regular semester and at the end of the semester, three examinations and a final examination are given which include short and long essay answers (50-300 words). For example, "Discuss in 200 or 300 words how to construct a portfolio and why is it necessary to continuosly manage and control your investment portfolio?7. METHODS OF EVALUATION:
Title 5, section 55002 requires grades to be “based on demonstrated proficiency in subject matter and the ability to demonstrate that proficiency, at least in part, by means of essays, or, in courses where the curriculum committee deems them to be appropriate, by problem solving exercises or skills demonstrations by students.” Methods of evaluation may include, but are not limited to the following (please note that evaluation should measure the outcomes detailed “Course Objectives” at the beginning of Section II):
Standardized TestsCriterion Reference Tests
Observance Record of Student
Performance
Homework
Essays/Essay Test Midterm
Written Compositions
Laboratory Reports
Oral Presentations
Term Papers, Projects, Reports
Class Participation
Problem –solving Exercises
Skills Demonstrations
Final Exam
Other (specify):
Internet Assiignments
8. METHODS OF INSTRUCTION:
Methods of instruction may include, but are not limited to the following:
Lecture
Discussion
Laboratory
Activity
Field Experience
Independent Study
Other (explain)
Small Group Discussions9. SUPPLIES:
List the supplies the student must provide.
Notebooks, pens , number two pencil , and calculator.10. COMPUTER COMPETENCY:
If applicable, explain how computer competency is included in the course.
Students will use computers for their Internet assignments.11. INFORMATION COMPETENCY:
Information competency is the ability to find, evaluate use, and communicate information in all its various formats. It combines aspects of library literacy, research methods and technological literacy. Information competency includes consideration of the ethical and legal implications and requires the application of both critical thinking and communications skills. If applicable, explain how information competency is included in the course.
With the use of computers for Internet research assignments, the students will use critical thinking skills and consideration of ethical and legal implication when doing assignments involved with explaining what should an investor establish first before developing and evecuting an investment program? Describing the steps in investing and types of investors, discussing the most common online and traditional sources of investment information on economic and current events, industries, companies and prices and discussing the principal types of short and long-term investment vehicles.12. DIVERSITY:
If applicable, explain how diversity (e.g., cultural, gender, etc.) is included in the course.
Course does not meet cultural diversity requirements.13. SCANS COMPETENCIES (required for all courses with vocational TOP Codes; recommended for all courses):
SCANS (Secretary’s Commission on Necessary Skills) are skills the Department of Labor identified, in consultation with business and industry leaders, which reflect the skills necessary for success in the workplace. Check the appropriate boxes to indicate the areas where students will develop the following skills (please note that all SCANS competencies do not apply to all courses):
RESOURCES
Managing Time: Selecting relevant goal-related activities, ranking them in order of importance, allocating time to activities, and understanding, preparing and following schedules.
Managing Money: Using or preparing budgets, including making cost and revenue forecasts; keeping detailed records to track budget performance, and making appropriate adjustments.
Managing Material and Facility Resources: Acquiring, storing, allocating, and distributing materials, supplies, parts, equipment, space or final products in order to make the best use of them.
INTERPERSONAL