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Security Analysis
Course Objective
- The objective of this subject is to acquaint the students with the basic knowledge of Security market
Course Outcomes(COs)
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Learning outcomes (at course level) |
Learning and teaching strategies |
Assessment Strategies |
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CO 31 : To develop an understanding of the conceptual framework for security analysis.
CO 32 : Overview of investment environment and risk return evaluation framework
CO 33: Basic understanding of bond fundamentals and their applications in valuations.
CO 34: Application of equity analysis tools for valuation and security selection.
CO 35: Understanding the types of bonds, valuation of bonds.
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Approach in teaching: Interactive Lectures using whiteboards, Discussion, Tutorials, Reading assignments, Demonstration, Team teaching, Quiz.
Learning activities for the students: Self learning assignments, Effective questions, Solving problems of unsolved questions, Problem based learning-cases, Group learning teamwork, Giving Tasks. |
Class test, Semester end examinations, Quiz, Solving problems in tutorials, Assignments, Presentation, Individual and group projects |
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Investment Scenario: Concept of Investment, Need for investment, Investment objectives, Investment constraints, Factors affecting investment decision, Investment decision process, Types of Investment. |
Investment Avenues: Security form of investments: Equity Shares, preference shares, debentures and government securities. Comparison of various investment options on the basis of risk, return, marketability. Types of government securities, Introduction to non- security form of investments.
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Functions, components. New issue market: functions, advantages and disadvantages, methods of raising capital in new issue market: Public issue, offer for sale, private placement, right issues, preference issues. |
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Concept, functions , constituents of Depository System, Dematerialization, Trading and Settlement procedure, freezing of shares in DMAT account, advantages of depository system. |
Listing of securities: Concept, classification, advantages, disadvantages, listing requirement, procedure for listing of securities
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Concept of Risk, total risk and its components. Concept of Return, Measurement of risk and Return, risk and return relationship . Risk aversion and risk premium. Equity valuation model: Valuation methods- dividend yield method, earning yield method, return on capital employed method, price/ earnings method. Discounted cash flow valuation method- discounted dividend |
model, discounted cash flow model, discounted internal rate of return model.
Bond valuation model: Types of bonds, valuation of bonds- coupon rate, current yield, spot interest rate, yield to maturity, yield to call. Bond prices, Bond Duration and risk associated with bonds
- Investment Analysis and Portfolio Management, Prasanna Chandra, Tata McGraw Hill, 3rd Edition, 2009.
- V.K.Bhalla, Investment Management, 7th Edition, S. Chand & Co., New Delhi, 2000.
- Gordon J. Alexander, William F. Sharpe & Jeffery V. Bailey, Fundamentals of
- Investments, Prentice Hall, India, 2003 edition.
- Preetam Singh, Investment Management, 9th edition, Himalaya Publishing House, New Delhi 2000.
- Prasanna Chandra, Managing Investments, Tata McGraw Hill, 2002 e
References:
• Preetam Singh, Investment Management, 9th edition, Himalaya Publishing
House, New Delhi 2000.
• Prasanna Chandra, Managing Investments, Tata McGraw Hill, 2002 e
• Security Analysis and Portfolio Management by Donald E Fisher and Ronald J. Jordon,
Prentice Hall, 6th Edition,2009
• Modern Portfolio Theory and Investment Analysis by Elton &Guper, John Wiley, 2008.
