SECURITY ANALYSIS

Paper Code: 
MFM 323
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 1: Understand about various investment avenues.

CO 2 : Develop an understandingof the

conceptual                  framework              for                  security

Approach in teaching: Interactive Lectures using whiteboards, Discussion, Tutorials,Reading assignments, Demonstration, Team teaching, Quiz.

 

Learning activities forthe students:

Self-learning assignments, Effectivequestions, Solving problems of unsolved questions, Problem based learning-cases, Group learning teamwork, Giving Tasks.

Class test, Semester end examinations,Quiz, Solvingproblems in tutorials, Assignments, Presentation, Individual

andgroup projects

analysis.

 

CO 3:  Recognize  the  functions  and

 

constituents of depository system.

 

CO 4: Overview of investment environment and risk return evaluation framework.

CO 5: Application of equity analysis

 

tools    for          valuation          and   security

 

selection.

 

CO 6: Develop an understanding about

 

bond            fundamentals          and            their

 

applications in valuations.

 

 

12.00
Unit I: 

Investment Scenario: Concept of Investment, Need for investment, Investment objectives, Investment constraints Factors affecting investmentdecision, Investment decision process, Types of Investment.

Investment Avenues: Security form of investments: Equity Shares,preference shares, debentures and governmen securities. Comparison ofvarious investment options on the basis of risk, return, marketability. Types of governmen securities, Introduction to non- security form of investments.

 

12.00
Unit II: 

Introduction to security market: Functions, components. New issue market: functions, advantages an disadvantages, methods of raising capitalin new issue market: Public issue, offer for sale, private placement, righ issues, preference issues.

 

12.00
Unit III: 

Depository System: Concept, functions , constituents of Depository System, Dematerialization, Trading an Settlement procedure, freezing ofshares 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: 

Risk and Return: Concept of Risk, total risk and its components. Conceptof 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 capita employed method, price/ earnings method.   Discounted   cash flow valuation method  discounted dividen model, discounted cash flow model, discounted internal rate of return model.

 

12.00
Unit V: 

Bond valuation model: Types of bonds, valuation of bonds- coupon rate, current yield, spot interest rate, yield t maturity, yield to call. Bond prices, Bond Duration and risk associated with bonds

 

Essential Readings: 
Essential Readings
  • Investment Analysis and Portfolio Management, Prasanna Chandra, Tata McGrawHill, 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 ofInvestments, Prentice Hall, India, 2003 edition.

 

Suggested Readings:
  • Preetam Singh, Investment Management, 9th edition, Himalaya PublishingHouse, New Delhi 2000.
  • Prasanna Chandra, Managing Investments, Tata McGraw Hill, 2002

 

References: 
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: 
2023-2024
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