Course Catalogue

Module                       : FIN 305:   Investment Analysis

Programme                : B.Com

Credit Value              : 12

Prerequisite               : FIN 201 : Introduction to Corporate Finance & Financial Management  & FIN 204 Financial Risk Management

 

General Objectives     

·               To create an understanding of the concepts of Investment analysis.

·               To develop skills for security market analysis and investment decisions.

 

Learning Outcomes      

Upon the successful completion of this module, student should be able to:

·           explain the basic tenets of security/ Investment analysis

·           critically evaluate the Investment Environment

·           apply and analyze techniques in evaluating Investment decisions

 

CONTENT

Unit-I: Investment Analysis                                                                                 (8 Hours)

Financial and Economic Meaning-Features of Investment-Objectives-Investment Vs Speculation-Investment Vs Gambling-Types of Investors-investment Avenues.

 

Unit-II: Security Market                                                                                                 (8 Hours)

Financial Market-Segments-Types-Participants-Regulatory Environment-Primary Market-Role-Methods and Steps in Floating New Issues-Book Building-STOCK EXCHANGES-Functions- Organization of SE-Listing of Securities- Regulation; trading on RSEBL

 

Unit- III: Risk                                                                                                                  (6 Hours)

Meaning of Risk-Elements of Risk-Systematic and Unsystematic Risk- Measurement of Risk-Measurement of systematic Risk.

 

Unit- IV: Fundamental analysis                                                                                     (8 Hours)

Meaning- EIC Frame Work-Economic Analysis-Economic Forecasting-Techniques-Anticipatory Surveys-Barometric or Indicator Approach-Econometric Model Building (basic concepts only) - Opportunistic Model Building (basic concepts only).

 

Unit- V: Industry Analysis                                                                                              (6 Hours)

CONCEPT OF INDUSTRY-industry Life Cycle-Industry Features. COMPANY ANALYSIS- Financial Statements  analysis-Other Variables.

 

Unit- VI: Technical Analysis                                                                                          (8 Hours)

Meaning-DOW Theory- Principles of Technical Analysis-Mathematical Indicators- (RSI, MACD, MFI, etc), Market Indicators-Technical Analysis Vs Fundamental Analysis.

 

 

Unit- VII: Efficient Market Theory                                                                               (6 Hours)

Random Walk Theory- Efficient Market Hypothesis-Forms of Market Efficiency-Weak Form, Semi Strong Form and Strong Form Efficiency-Competitive Market Hypothesis.

 

Teaching strategies

·         Lectures

·         Case studies

·         Tutorials

·         Presentations and Projects.

 

Assessment                            

·         Two Case Studies                   20%

·         Mid – Semester Exam             30%

·         End – Semester Exam             50%

                                                 Total 100%

Essential Texts

1.    Fisher, DE & Jordan, RJ, Security Analysis and Portfolio Management,

2.   Chandra, P, Investment management 

 

References

1.   Bhalla, VK, Investment Management

2.   Kevin S, Security Analysis and Portfolio Management