Understanding Investments

In this introduction to investing, learn some of investing's fundamental ideas and the basic impediments that can interfere with sound investment decisions. Also, learn that there are ways to protect yourself, and that the path to becoming a sound investor is available to anyone willing to learn.

Can anyone actually beat the performance of the stock market? Grasp what the Efficient Market Hypothesis and the debate over its validity can reveal about the answer - and how your own opinion can shape your investment strategy.

Learn why stocks, though often not the best place for a newcomer to begin investing, can be the best means of learning about investing. Explore key ideas like dealers vs. brokers, the different kinds of buy-or-sell orders, and what stocks really are.

In this first lecture about bonds - with the focus on a "buy-and-hold" strategy - grasp the variety of available bonds and the features most important to an investor: who issued them, whether they are secured, and the timing of payments. You also learn how to "ladder" your holdings for a consistent income stream.

Mutual funds are one of several types of so-called "pooled investments," which allow small investors to hold securities they perhaps couldn't afford individually. Explore how these pooled investments work, with the focus on the most popular type, the open-end mutual fund, and learn what to look for in a summary prospectus.

Learn how this relatively new option for investors differs from mutual funds and about the advantages they may have over mutual funds for those making investments outside of tax-advantaged plans such as 401(k)s. You also learn what depository receipts are, and the key role they play in ETFs.