Written by two university business professors, this guide is an overview of the basic concepts of investment and their applications to specific types of investments. There is a brief discussion of how to get started as an investor, including such considerations as taxes and risk factors. There is also a general introduction to stock-related topics such as security markets, the role of brokers, and market averages and indexes.
The remainder of the book is divided into two parts: types of investments, including stocks, fixed-income securities, collectibles, precious metals, options and futures, and the techniques for evaluating and analyzing potential investments. Each chapter is headed by a list of objectives and concludes with a review of the information covered and a self-test. Test answers are provided. There are useful tables and charts throughout and three appendices covering the use of personal computers in investing, selected investment publications, and future and present value tables.
The information on types of investments is presented clearly and concisely in a manner that makes it easily comprehensible to the novice investor. However, the chapters on technical, fundamental, and portfolio analysis make extensive use of somewhat complex mathematical formulas that are considerably more difficult to follow.
The primary audience for this book is probably university economics and business students. The authors state that the book is useful for prospective financial planners. Readers wanting general “how-to-do-it” investment advice should make their selection from among the large number of books available to the beginning or less-sophisticated investor.