Security Analysis

Paper Code: 
MFM 323
Credits: 
4
Contact Hours: 
60.00
Max. Marks: 
100.00
Objective: 

Learning Outcomes:
• To develop an understanding of the conceptual framework for security analysis
• Overview of investment environment and risk return evaluation framework
• Basic understanding of bond fundamentals and their applications in valuations
• Application of equity analysis tools for valuation and security selection

12.00
Unit I: 
Investment Scenario:

Investment Scenario: Concept of Investment, Investment classification, Financial Markets, Real Investment avenues.

Risk and Return: Concept of Risk and Return, Measures of Return, Measures of Risk, Risk reduction through diversification.

Equity Markets and Their Structures: Markets and their functions, Liquidity capital formation, Development of securities market in India, Security market indicators, Major Stock Exchanges.

12.00
Unit II: 
Sources of Financial Information, Fundamental Analysis& Technical Analysis

Sources of Financial Information, Fundamental Analysis: Framework, Concept of Intrinsic Value, Economic forecasting methods, Industry analysis, Industry life cycle, Company analysis.

Technical Analysis:  Concept, Fundamental v/v Technical Analysis, The Dow theory, Charting, Price patterns.

12.00
Unit III: 
Equity Valuation Models

Equity Valuation Models: Valuation Methods- Dividend Discount Models, Measures of relative value- Price/Earning ratio, Price/ Book value ratio, Price/ sales ratio, Economic Value added and Market value added concept.

12.00
Unit IV: 
Bond Valuation

Bond Valuation:  Bond Terminology, Types of Bonds, Value of bond, Coupon yield, Current yield, yield to maturity, Bond Price theorems, Risks associated with 

12.00
Unit V: 
Basics of securities

Basics of securities - Listing of securities, trading procedure, De mat accounts and clearing and settlement.

An Overview of other investment options like Real Assets- Appraisal of real assets, Subjective factors affecting the value of real assets.

Essential Readings: 

• 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.

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.

Academic Year: 
2019-2020
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