SECURITY ANALYSIS

Paper Code: 
MFM 326
Credits: 
4
Contact Hours: 
60.00
Max. Marks: 
100.00
Objective: 

Course Outcomes

Learning and teaching strategies

Assessment

Strategies

  
 

On completion of this course, the students will be able to;

CO 135: Understand about various investment avenues.

 

CO 136 : Develop an understanding of the conceptual framework for security analysis.

 

CO 137: Recognize the functions and constituents of depository system.

 

CO138.   Overview of investment environment and risk return evaluation framework.

 

CO 139. Application of equity analysis tools for valuation and security selection.

CO 140. Develop an understanding about bond fundamentals and their applications in   valuations.

 

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

  
 

 

12.00
Unit I: 
Unit-1

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.
 

 

12.00
Unit II: 
Unit-II

Introduction to security market: 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.

12.00
Unit III: 
Unit-III

Depository System: 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.

12.00
Unit IV: 
Unit-IV

Risk and Return: 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.
 

 

12.00
Unit V: 
Unit-V

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

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.
  • ordon J. Alexander, William F. Sharpe & Jeffery V. Bailey, Fundamentals of Investments, Prentice Hall, India, 2003 edition.

 

References: 

Suggested Readings:

  • Preetam Singh, Investment Management, 9th edition, Himalaya Publishing House, New Delhi 2000.
    • Prasanna Chandra, Managing Investments, Tata McGraw Hill, 2002

 

  E-Resources:

 

 Journals:

  • South Asian Journal of Business and Management Cases; https://sagepub.com
  • Indian Journal of Finance
  • Asian Journal of Management Cases

 

Academic Year: 
2022-2023
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