Investment principles and policy/by Ralph R. Pickett and Marshall D. Ketchum

This book is intended for college students and for investors interested in a knowledge of the basic principles of investment. Presentation is from the viewpoint of the individual as distinguished from the institutional investor. It is not possible to treat fully the problems of both in a single volume. An understanding of the needs of the individual investor and of the policies designed to promote his interests should precede consideration of institutional investments. Institutional investors depend, in fact, upon the investment policies of individual investors. The problems of individuals are, therefore, the most basic phase of the subject, the authors hope that by concentrating upon this approach they have dealt adequately with the needs of the individual investor.

The study of investment requires an understanding of economic be havior and some acquaintance with methods of analysis. It is assumed that the student has a knowledge of the basic principles of economics, accounting, and corporation finance. The reader may, however, benefit from a refresher course in these fields, provision for which is made in a portion of Part 1; chapters 3, 4, 5, and 6 especially should be useful to the reader who has not had recent contact with the subject matter of account ing and corporation finance.

Changes in the framework of investments induced by government have been so far-reaching that political influences require emphasis. In these days the student of investment finds it more than ever necessary to know and be able to evaluate the significance of governmental trends and poli cies with reference to individual commitments. The regulation of various industries, the influence of taxation, government supervision of the issu ance of securities and of security exchanges, and the impact generally of government upon investment are basic factors in the study of investments. It is the hope of the authors that students and other readers will find this book an aid to the understanding of individual investment policy and will be stimulated to continued interest in and study of its problems.