Practice of Investments

This book is a by-product of pieces of research work on Theory, Research, and Application of Investment conducted for Knowledge Area Modules (KAMs) at the doctoral level at Walden University and readings from other sources. It is written to help readers understand investment management and analysis from the practitioners' point of view. It will be very useful for business students undertaking a course in Investment Analysis and Management. It will help business undergraduate students prepare for advanced modern investment courses taught at postgraduate level and tested in most professional examinations. Again, it will prepare business students for real world investment problems at the workplace. Finance professionals practicing investment management for a living and ordinary people who want to learn about investment practice will also find this book very useful. The book illustrates how to use equities, money market, fixed income securities, and alternative investments to build investment portfolios to achieve investment goals.

           Understanding the investment concepts requires a minimal understanding of statistics, accounting, economics, and finance. An in-depth knowledge in these functional areas is not required but is very helpful. The book differentiates itself from other investment textbooks in the following respects: First, the book fully explains the different kinds of financial and real assets that can be used to build profitable investment portfolios. An understanding of these individual securities provides investors with tools and knowledge to increase their rate of returns and minimize their risks. Second, the book introduces alternative investments that have not received much attention in other investment textbooks. The financial environment has changed dramatically with advancement in technology, and modern investors are becoming more sophisticated with innovative ideas and products. It emphasizes the use of venture capital funds, hedge funds etc. in building portfolios. Third, the book applies the concepts of investment theory in a practical manner using examples, illustrations and real-world problems.