JML INSTITUTE: 
NOVICE INVESTOR WORKSHOP
__________________________________________________

1.	WHY BUY?  
		Irresistable opportunities
		better return on capital
		to offset depreciation
		to offset inflation
		excitement
2.	WHAT TO BUY?
		low-priced stock
		stock with low P/E ratio
		mutual funds
		futures
		
3.	WHEN TO BUY?
		when market trends are bullish
		when market trends are bearish
		at breakout points
		at trading points
		after buyers remorse
		80% above last base
4.	HOW TO BUY?

5.	HOW MUCH TO BUY?

6.	WHEN TO SELL?

	Are you surprised to see this module on investing as a part of computer accounting course?  Here are the hard facts.   Investors have always used companies' balance sheets and income statements as data input to create RATIOS, TRENDS,  and GRAPHS that are used to predict the performance of securities.
	The accountant is part of the efficiency team thats always trying to create more income from less expenses and less working hours.   The accountant whom we will call Jay Obie must interact with quality control analysts, system analysts, research & development, and  advertizing to stay ahead of the competition, making their stock as glamorous as possible.   
	Investors range from reckless speculators to conservative no-risks takers.  All valuables have 3 characteristics  demand, actual quality, and value.  Demand varies with time.  An investor wants to buy a companies' stock if the company is high quality and stable over a long period of time.  Quality has other variables hidden in its meaning.  Jay Obie has been given an assignment by his supervisor to discover these variables and include them in an efficiency report to be a part of bid for a big new contract.  His work will include disclosing attractive characteristics of the business and implementing changes to improve unattractive characteristics of our mock business "VIMCO". 

____________________________________________________________________________________

____________________________________________________________________________________

1.  	Investors mainly are seeking under-valued stock.  That is, stock thats worth more than it's price per share with hope that when the public becomes aware, its value will rise, hopefully, in a short span of time.  an under-valued stock must also have these characteristics to be in demand.  
	1.  	Long history of being ahead of the market
	2.

Jay has listed some useful RATIOS that supports the claim of VIMCO's stock being under-valued.
	1.
	2.
	3.
____________________________________________________________________________________

2.	Technical analysis is the science of prediction, using statistical methods to find opportunistic entry points to purchase certain securities.   Ratios, equations, trendlines, averages, graphs, and computer allogarithms are obtainable on the internet 24 hours per day.   The most used determinants of value are 
	1.
	2.
	Other pertinent variable are;
	1.
	2.
	3,

    
3.