Security Analysis

Paper Code: 
FMG 416
Credits: 
3
Contact Hours: 
45.00
Max. Marks: 
100.00
Objective: 

Course Objectives :The objective of this course is -

  • To acquaint the students with the techniques of security analysis necessary while making an investment.  
  • To make student learn about various methods of security valuation.

 

Course Outcome (COs):

Course

Learning outcome

 (at course level)

Learning and teaching strategies

Assessment Strategies

Paper Code

Paper Title

FMG 416

Security Analysis

CO144 Students will learn the methodology used to calculate various stock indices and explore details about world’s stock exchanges and their indices.

CO145 Understand different investment alternatives in the market and their peculiar features.

CO146 Students will know how to apply different valuation models to evaluate fixed income securities, stocks, and how to use them to manage their investment risks.

CO147 Students will be able to identify, analyze and draw reasoned conclusions in selecting and presenting information on securities based on Fundamental analysis.

CO148 Student will be able to understand and analyze daily stock price movement by studying charts and patterns and make investment decisions thereafter.

 

 

Approach in teaching: Interactive Lectures, Discussion, Tutorials, Practical cases Demonstration, Power point presentation.    

 Learning activities for the students:                              Self learning assignments, Effective questions, Seminar presentation,  Live practical problems analysis of stocks using approaches of Fundamental analysis; Live practical analysis of stock charts and patterns techniques.

Class test, Semester end examinations, Quiz, Solving problems in tutorials, Assignments, Presentation, Individual and group projects

 

9.00
Unit I: 
Security Analysis –

Concept, Usefulness, Computation Of Stock Indices, Segments. Major stock indices of India & world.

9.00
Unit II: 
Types of Securities-

Types-Debt and Equity, Shares and their characteristics – Various forms of equity capital, Hybrid Securities ( Income cum Growth),Bonds

9.00
Unit III: 
Valuation of Securities -

Valuation of equity, Valuation of Debts and Bonds

9.00
Unit IV: 
Fundamental Analysis

Meaning, Need of Fundamental Analysis, Top Down Valuation (EIC Analysis)

9.00
Unit V: 
Technical Analysis

Basic Assumption, Strengths & Weaknesses of Technical Analysis, Candle Charts( one candle, two candles and Three candle charts), Pattern- Support and Resistance lines and its importance; Head and Shoulders, ;Double top and double bottom; Major indicators & oscillators. Dow Theory and Elliot Wave Theory

Essential Readings: 

• Donald E. Fisher & Ronald J. Jordan, Security Analysis and Portfolio Management, Prentice Hall of India, 2003.
• 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.
• Levi D, Maurice, International Finance, Routledge.
• Krugman, Paul R., Obstfeld, Maurice and Melitz, Marc, International Economics, Pearson Education.
• Madura, Jeff, International Corporate Finance, South-Western/Cengage learning.
• Eun, Cheol S. and Resnick, Bruce G., International Financial Management, Tata McGraw- Hill.
• Security analysis & Portfolio Management, Pandian, Vikash Publication house

Academic Year: 
2020-2021
  • Printer-friendly version
  • PDF version