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1. What Are Equity Securities? Equity securities represent ownership in a company. When you buy a stock, you become a shareholder, meaning you own a piece of the business. Common Stocks: Most widely held. Gives voting rights + dividends (if declared). Preferred Stocks: No voting rights, but fixed dividends and higher claim on assets. --- 2. Key Terms You Must Know Shares Outstanding – Total shares issued by a company. Market Capitalization = Share Price × Shares Outstanding. Dividend – Portion of earnings paid to shareholders. Earnings Per Share (EPS) = Net Income / Shares Outstanding. Price-to-Earnings Ratio (P/E) = Share Price / EPS — used to value stocks. --- 3. Stock Price Drivers Earnings Growth – Strong earnings = potential for price appreciation. Market Sentiment – Investor mood, news, and trends influence prices. Macroeconomic Factors – Interest rates, inflation, GDP growth. Company Fundamentals – Revenue, profit margins, competitive edge. --- 4. Types of Equity Investing Growt...

1. What Are Fixed Income Securities? Fixed income securities are investments that pay regular interest (coupon) and return the principal at maturity. Common types: Bonds (corporate, government, municipal) Treasury bills and notes Certificates of deposit (CDs) Mortgage-backed securities (MBS) --- 2. Key Terminology You Must Know Face Value (Par) – The amount paid back at maturity, usually $1,000. Coupon Rate – The interest rate paid annually/semi-annually on face value. Yield – Return on the bond, expressed as a percentage. Maturity – When the principal is repaid. Price – Bonds may trade at premium (above par) or discount (below par). --- 3. Bond Pricing & Yield Relationship When interest rates rise, bond prices fall (and vice versa). Yield to Maturity (YTM) – The total return if held till maturity. Current Yield = Coupon / Current Price --- 4. Credit Risk & Ratings Bonds have credit ratings from agencies like Moody's and S&P. Investment Grade: Less risky (e.g., AAA, AA)...