Investment Decision-Making and Due Diligence

This unit equips students with practical skills to evaluate a range of investment options (stocks, bonds, funds, real estate, and small businesses), perform due diligence on information sources, and align investment choices with personal financial goals. Students will practice assessing risks, financing and closing transactions, and countering common biases and marketing hype to make informed investing decisions.

Learning Objectives

• Analyze and compare the characteristics, risks, costs, and expected returns of common investment vehicles (stocks, bonds, mutual/index funds, real estate, lending instruments, and small-business ownership) using case studies and quantitative metrics.
• Evaluate the credibility and relevance of investment information from brokerages, media, newsletters, internet resources, corporate reports, and financial advisors, identifying red flags such as unaudited claims, hype, and conflicts of interest.
• Apply financial goal-setting and portfolio management techniques to develop a diversified investment plan that specifies objectives, time horizon, asset allocation, spending limits, and income-generation strategies under realistic scenarios.
• Demonstrate the steps and considerations involved in acquiring investments or businesses—including financing options, working with agents, due diligence checklists, incorporation decisions, and closing procedures—by completing simulated transaction exercises.