About This Chapter
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
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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Other chapters within the Finance 303: Financial Institutions & Markets course
- The Federal Reserve System & Financial Institutions
- Interest Rates, Rate Changes, & Risk Structure
- Understanding Financial Markets
- Basics of Financial Investments
- Equity Ownership & Risk Exposure
- Calculating Prices & Yields
- Principles of Financial Statement Analysis
- Financial Risk Management & Mitigation
- Financial Regulation & Ethics
- Required Assignments for Finance 303