Security Analysis

Curriculum Guideline

Effective Date:
Course
Discontinued
No
Course Code
FINC 3390
Descriptive
Security Analysis
Department
Finance
Faculty
Commerce & Business Administration
Credits
3.00
Start Date
End Term
201420
PLAR
No
Semester Length
15 Weeks X 4 Hours per Week = 60 Hours
Max Class Size
35
Contact Hours
Lecture: 4 Hours
Method Of Instruction
Lecture
Seminar
Methods Of Instruction

Material will be presented within a lecture format

Course Description
This course focuses on the analysis of individual equity and fixed income investment securities using advanced theoretical, fundamental and technical techniques.
Course Content
  1. Introduction to the investment markets
    • primary and secondary markets
    • exchange trading and over the counter
    • types of securities
    • types of investors
    • basic investment concepts: risk free rates, return and risk measurement
  2. Macroeconomic and industry analysis
    • interest rates, monetary and fiscal policy as they affect the markets
    • the business cycle
  3. Industry analysis
    • sensitivity to business cycles
    • industry and company life cycles
    • industry analysis using appropriate models
  4. Equity valuation
    • financial statement analysis
    • dividend valuation or present value model
    • alternative valuation techniques including: book, liquidation, replacement and substitution value
    • price earnings ratios
    • cash flow analysis
    • dividend policy
  5. Technical analysis
    • definition of technical analysis
    • analysis of market trends with emphasis on individual stock trends
  6. Fixed income securities
    • money markets and bond trading
    • creation and sale of new debt issues
    • bond trading
    • interest rates and yield structures
    • bond investment strategies: passive and active
    • risk management including duration and immunization
  7. Primary derivatives: warrants, rights, strip bonds
Learning Outcomes

The student will be able to select (and justify) appropriate investments in both the equity and fixed income segments of the securities market taking into consideration the impact of the economy (both national and global), industry variables, company specifics and investor psychology.

Means of Assessment

Minimum of 3 evaluations, none of which will exceed 40%, for a total of 100%.

Textbook Materials

Textbooks and Materials to be Purchased by Students

 

To be chosen by the instructor from:

 

  • Radcliffe, Robert.  Investment Concepts Analysis Strategy, Latest Ed.  Don Mills:  Addison Wesley Longman Ltd.

 

Textbooks and Materials to be Purchased by Students (cont’d)

 

  • Bodie et al.  Investments, Latest Canadian Ed.  McGraw-Hill Ryerson.
Prerequisites