Prof.ssa E. Isaia
The equity market: a general overview
Main features and types of equities.
The operations on equity capital:
- the initial public offerings (IPOs)
- the seasoned offerings
- the hostile and friendly takeovers
- the buy-backs
- the stock options programs
The secondary stock market: listing requirements and microstructure.
The equity derivatives:
- future contracts
- call and put options
- derivatives pricing (basics)
- hedging and trading strategies with derivatives (basics)
Material and information provided through www.klips.it during the course.
April 18th-22nd: Prof. HELENA VAN ZYL from University of the Free State Bloemfontein – South Africa.
Book: Jones, CP. 2010. Principles and Concepts. 11th ed. New York: John Wiley.
Numerous factors and variables influence the international and national investment environment. However, not all these factors and variables have the same amount of influence on the investment environment. The problem for asset managers and investors is to distinguish between important and less important information that can influence the investment environment, and eventually investment decisions.
Factors influencing the investment environment to be considered are the condition of the American economy, the level of American interest rates, the Chinese economy, trade relations between America and China, the level of local interest rates, the value of the currency, conditions in the foreign exchange markets, profit warnings by companies, outcomes of elections, statements by politicians and business leaders, etc. The question is how to evaluate and interpret these factors when taking investment decisions. Apart from analysing macroeconomic factors, company-specific factors must also be analysed, e.g. the quality of management, profit record, business strategy, etc. Eventually all relevant information is used to compile an efficient investment portfolio.
The aim of this module is to provide students with a theoretical and practical basis necessary to understand the international and local investment environment in order to take informed investment decisions and even to compile and manage an investment portfolio.
The outline of the module is as follows:
Section 1: Investment concepts and portfolio theory
• Important investment concepts
• Return and risk
• Portfolio theory
• Portfolio selection
• Asset pricing models
Section 2: Security analysis
• Share valuation
• Market efficiency
• Fundamental analysis
• Technical analysis
• Bond valuation
Section 3: Investment management
• Portfolio management
• Investment performance