When you complete this course, you will become familiar with the general structure of primary and secondary equity markets from a domestic and international perspective. Beginning with introductory finance notions of risk and return, we examine qualitative concepts such as market efficiency and valuation.These tools should enable you to build valuation models for common stocks. Through this process, you will also learn how professional financial analysts should evaluate companies. The course is suitable for students seeking eventual employment with a brokerage company, investment company or financial services company with responsibilities in evaluating and selecting equity securities for investment portfolios.
What you'll learn
To advance the understanding of fundamental concepts of financial markets and market participants.
To explain the structure of global markets in which equities trade.
To evaluate the economic and industry environment in which companies operate.
To develop and employ tools of financial analysis for examining company fundamentals.
To understand techniques for valuing equity securities.
To link theories of valuation to practical aspects of investing.
Week 1: Introduction Markets, Participants and Performance
Real Versus Financial Assets
History of Stock Markets, Players and Funds
Role for Retail Investors
Rates of Return – Review and More
Week 2: Market Structure
Measuring Expected Returns, Discussing Risk
Tying Risk and Returns to Pricing Assets
Types of Markets
Types of Orders
Week 3: Trading Locations and Practices
Technology in Trading
How Margin Works
Advanced Margin Considerations
Short Selling - Basics
Short Selling – Games and Strategies
Setting the Valuation Stage
Economic Analysis - Measurement Issues
Economic Analysis - Policy Issues
Week 4: Basics of Valuation
Business Cycles and Indicators
Industry and Company Analysis
Approaches to Quality Evaluation
Introducing Technical Analysis
Week 5: Fundamental Valuation Analysis
Introducing Fundamental Analysis – Notions of Value