Principles of Fundamental Analysis

I.     Course Prefix/Number: FIS 130

       Course Name: Principles of Fundamental Analysis

       Credits: 3 (3 lecture; 0 lab)

II.    Prerequisite

None

III.   Course (Catalog) Description

Course studies use of fundamental analysis in commodity and securities price forecasting.  Content includes supply and demand, price cycles, forecasting of prices and research methods.

IV.   Learning Objectives

By the end of the course, students who complete all work satisfactorily will be capable of understanding and analyzing business balance sheets and income statements; evaluating financial characteristics especially liquidity and solvency ratios; analyzing earnings ratio as well as learning how earnings and divided growth affect market prices; learning how to apply these key ratios to interrelated markets; comprehending the nature of industry analysis; forecasting economic cycles to grasp the effects of economic performance of different investment vehicles in related markets; realizing the importance of forecasting future economic activity; and using various means of analysis to discover overvalued/undervalued securities.

V.    Academic Integrity and Student Conduct

Students and employees at Oakton Community College are required to demonstrate academic integrity and follow Oakton's Code of Academic Conduct. This code prohibits:

• cheating,
• plagiarism (turning in work not written by you, or lacking proper citation),
• falsification and fabrication (lying or distorting the truth),
• helping others to cheat,
• unauthorized changes on official documents,
• pretending to be someone else or having someone else pretend to be you,
• making or accepting bribes, special favors, or threats, and
• any other behavior that violates academic integrity.

There are serious consequences to violations of the academic integrity policy. Oakton's policies and procedures provide students a fair hearing if a complaint is made against you. If you are found to have violated the policy, the minimum penalty is failure on the assignment and, a disciplinary record will be established and kept on file in the office of the Vice President for Student Affairs for a period of 3 years.

Please review the Code of Academic Conduct and the Code of Student Conduct, both located online at
www.oakton.edu/studentlife/student-handbook.pdf

VI.   Sequence of Topics

  1. Definition of Fundamental Analysis (FA)
  2. Relationship to Other Methods of Analysis
  3. Uses of FA in Different Types of Markets
  4. Creation of US Stock Market
  5. Professional Analysis and the Public Advantage
  6. Four Aspects to Complete and Concise Analysis
  7. Fundamental Methods of Security Analysis
  8. Security Analysis and Investment Strategy
  9. Financial Statements
  10. Balance Sheet
  11. Income Statement
  12. Evaluate Financial Performance
  13. Liquidity and Solvency Ratios
  14. Measuring Earning Strength
  15. Earnings Ratios
  16. Using Ratio Analysis
  17. Evaluating the Economy and Industry

VII.  Methods of Instruction

Lectures, discussions, audio/visual, and simulations.
Course may be taught as face-to-face, hybrid or online course.

VIII. Course Practices Required

College level reading and writing skills are necessary.  Considerable emphasis is placed upon class participation.

IX.   Instructional Materials

Note: Current textbook information for each course and section is available on Oakton's Schedule of Classes.

Required reading of The Wall Street Journal and Investors Daily newspapers.  Suggested, but not required, text, Fundamental Method of Security Analysis,
Graham & Dodd.

X.    Methods of Evaluating Student Progress

Periodic testing, mid-term and final exam each of which will be multiple choice.  Class participation will be used to evaluate students.

XI.   Other Course Information

Attendance is mandatory unless cleared in advance by the instructor.

If you have a documented learning, psychological, or physical disability you may be entitled to reasonable academic accommodations or services. To request accommodations or services, contact the Access and Disability Resource Center at the Des Plaines or Skokie campus. All students are expected to fulfill essential course requirements. The College will not waive any essential skill or requirement of a course or degree program.

Oakton Community College is committed to maintaining a campus environment emphasizing the dignity and worth of all members of the community, and complies with all federal and state Title IX requirements.

Resources and support for
  • pregnancy-related and parenting accommodations; and
  • victims of sexual misconduct
can be found at www.oakton.edu/title9/.

Resources and support for LGBTQ+ students can be found at www.oakton.edu/lgbtq.