Foundations of Investing

This unit introduces core investing concepts, types of financial instruments, and practical decision-making skills needed to begin building an investment plan. Students will learn how markets work, evaluate risks and returns, assess liquidity and financing options, and use research tools to make evidence-based investment choices that prepare them for advanced portfolio and valuation topics in subsequent units.

Learning Objectives

• Analyze and compare major investment vehicles (stocks, bonds, mutual funds, ETFs, real estate, and entrepreneurial ventures) including how companies raise capital, typical return profiles, liquidity, fees, and basic tax considerations
• Develop a personal liquidity and financing plan by calculating emergency reserve needs, comparing bank and broker options, and outlining financing approaches for home or real-estate investments
• Evaluate and synthesize financial information by interpreting annual reports, assessing the credibility of media and published sources, and applying investment research tools/software to support evidence-based recommendations
• Apply risk assessment and management techniques by calculating basic measures of return and risk, identifying diversification strategies, and proposing debt-management and allocation options aligned with investor goals and time horizons