Ch 1: Foundations of Finance & Investment

About This Chapter

For an overview of basic finance and investment concepts, simply work through this series of online finance lessons and quizzes. The knowledge you'll gain in this chapter can be helpful for upcoming exams, homework assignments or any other academic need.

Foundations of Finance & Investment - Chapter Summary

This online study guide chapter offers a thorough introductory overview of finance and investment. Inside, you'll find expertly taught lessons that discuss foundational finance and investment concepts, including financial markets, asset classes, economic indicators and securities fraud regulations. You'll also take a look at important historical events and legislation that relate to the world of finance. Each lesson comes with a short quiz to help you retain the information, and we've included a comprehensive chapter exam that you can take after you've reviewed the lessons. Use any computer or mobile device to study, and don't hesitate to submit questions to our subject-matter experts if you need any help. When you're finished with the chapter, you should be able to:

  • Compare types of financing, financial investments and financial markets
  • Determine how investment bankers work in securities markets
  • Define asset classes
  • Recognize different economic indicators
  • Discuss theories related to economic growth and development
  • Share the causes and effects of the Great Recession
  • Summarize Rule 144 and Section 11 of the Securities Act of 1933
  • Identify significant financial crises of the 20th and 21st centuries
  • Explain the content of the Sarbanes-Oxley Act
  • Assess regulations and penalties for insider trading and securities fraud

12 Lessons in Chapter 1: Foundations of Finance & Investment
Test your knowledge with a 30-question chapter practice test
What Is Financing? - Definition & Types

1. What Is Financing? - Definition & Types

People borrow money to purchase homes, cars, boats, or anything else they don't have the money for at the moment they want to make the purchase. In this lesson, learn what financing is, as well as different types of financing used every day.

What is a Financial Investment? - Definition, Types & Examples

2. What is a Financial Investment? - Definition, Types & Examples

Learn about the basics of financial investments and some of the key terminology that is important to understand. Find out about some of the most common types of financial investments and the unique attributes of each.

Financial Markets: Types & Characteristics

3. Financial Markets: Types & Characteristics

Have you ever wanted to start a business? How would you get the money to start your business? Financial markets can be used to generate capital for new and existing organizations. Short-term and long-term assets are traded on the financial market to raise money over short and long periods of time.

Securities Markets and Investment Bankers

4. Securities Markets and Investment Bankers

Securities markets and investment banks provide opportunities for companies to obtain capital and people to make investments to increase their wealth. In this lesson, you'll learn about securities markets and the players involved.

Asset Classes: Definition & Examples

5. Asset Classes: Definition & Examples

There are many ways to invest money. In this lesson, we'll examine the major asset classes in the world of finance: equities, fixed income, and cash equivalent. We'll take a look at what they are and examples of each.

Economic Indicators: Definition & Types

6. Economic Indicators: Definition & Types

This lesson will cover the definition of and types of economic indicators. The main focus will be on leading and lagging indicators and why they are used for economic analysis, and why they are important for a government to use. While there are many different types of indicators, we will only focus on the main ones that are used.

What Is Economic Growth and Development? - Definition, Theories & Indicators

7. What Is Economic Growth and Development? - Definition, Theories & Indicators

A country's economic health can usually be measured by looking at that country's economic growth and development. This lesson defines and explains economic growth and economic development, including the role of U.S. foreign aid.

What was the Great Recession? - Timeline, Facts, Causes & Effects

8. What was the Great Recession? - Timeline, Facts, Causes & Effects

Beginning in 2007 and through 2009, the world economy was in turmoil. In this lesson, you'll learn about the Great Recession; why it happened, the events that made it worse, and what it meant to the United States and the world.

Securities Act of 1933: Rule 144 & Section 11

9. Securities Act of 1933: Rule 144 & Section 11

Finances can be a tricky subject, but in 1933, Congress passed legislation to help with that. In this lesson, we'll explore the Securities Act of 1933 and see how this changed American finance.

Financial Crises of the 20th & 21st Centuries

10. Financial Crises of the 20th & 21st Centuries

This lesson goes over the basics of four different financial crises of the 20th and 21st centuries. They are the Great Depression, LTCM, the Dotcom Bubble, and the Great Recession.

The Sarbanes-Oxley Act: Definition and Explanation

11. The Sarbanes-Oxley Act: Definition and Explanation

Government regulations play a major role in corporate financial reporting. In this lesson, you will learn about one of the most important regulations enacted in the last two decades - the Sarbanes-Oxley Act.

Securities Fraud & Insider Trading: Definition, Regulations & Penalty

12. Securities Fraud & Insider Trading: Definition, Regulations & Penalty

Securities fraud or insider trading is illegally trading stock on the open market using confidential information. It is usually done to gain an advantage over other traders.

Chapter Practice Exam
Test your knowledge of this chapter with a 30 question practice chapter exam.
Not Taken
Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
Not Taken

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