BUS 325 | Chapter 2: Asset Classes and Financial Instruments

This chapter introduces the major asset classes and financial instruments available to investors and explains how each plays a role in the investment decision-making process. It provides a structured overview of the characteristics, risks, returns, and uses of different investment assets.

Chapter 2 helps students understand how financial instruments are classified, how they are traded in financial markets, and how they fit into a diversified investment portfolio. It lays the foundation for analyzing and comparing investment alternatives in later chapters.

By the end of this chapter, you will understand:

  • The main asset classes (equities, fixed income, money market instruments, and alternative investments)

  • The characteristics of common financial instruments such as stocks, bonds, and derivatives

  • Risk and return features of different asset classes

  • How financial instruments are used by investors and institutions

  • The importance of asset allocation and diversification

This chapter is essential for developing a solid understanding of investment options and preparing students for more advanced investment analysis in the BUS 325 Investment course.

Exercise Files
Investment_Course_Overview_For_Developer (pdf)
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