SECURITY ANALYSIS (Theory)

Introduction, Investment objectives and 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; non-security form of investments (Deposit schemes, Tax saving schemes, Life insurance policies, Mutual funds, Real assets)

Security analysis-Objectives, approaches, investment strategies
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

Bond Return and Valuation: 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

Stock Return and Valuation: 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.

Fundamental analysis: concept, objectives, approaches. Economic analysis- meaning. Economic forces. Industry analysis- approaches to industry analysis. Company analysis- Quality of Management, labour-relation management and location, pattern of existing shareholdings, growth record, size and ranking, earnings analysis, financial analysis.
Technical Analysis: Concept, assumptions, utility or significance, technical analysis v/s fundamental analysis. Theories of technical analysis- Dow Theory. Tools and techniques of Technical analysis- Price and volume charts, bar chart, Line chart, Point and figure chart