Explain:

The role and functions of financial markets, what benefits they provide to investors.

The different types of markets; money markets, capital markets, primary markets, secondary markets; NYSE, NASDAQ; their basic features, purposes, how they differ, what functions they provide, what benefits they provide.

Components of the Investors Required Rate of Return - You should understand the various components of the required return, and be able to apply them to various securities.

The basic characteristics of:

T-Bills, T-Notes and T-Bonds, commercial paper, municipal bonds, corporate bonds, preferred stock, common stock, (and if we get to it in class before the test, options and futures.)

How to calculate a T-Bills price; the formula will be given.

You should understand the basic features of each security; how it provides a return (dividends, capital gain, etc.) its risks, the demanders and suppliers of the security, and the existence (or not) of a secondary market.

- how to analyze a corporate bond vs. muni bond investment decision

The key differences between corporate debt and common stock features (for the same firm), and what they mean in terms of the relative risks of the securities