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Securities Market. Experience of Europe
Study Course Description
Course Description Statuss:Approved
Course Description Version:6.00
Study Course Accepted:02.02.2024 12:29:53
| Study Course Information | |||||||||
| Course Code: | SBUEK_186 | LQF level: | Level 6 | ||||||
| Credit Points: | 2.00 | ECTS: | 3.00 | ||||||
| Branch of Science: | Economics | Target Audience: | Business Management | ||||||
| Study Course Supervisor | |||||||||
| Course Supervisor: | Anželika Berķe-Berga | ||||||||
| Study Course Implementer | |||||||||
| Structural Unit: | Faculty of Social Sciences | ||||||||
| The Head of Structural Unit: | |||||||||
| Contacts: | Dzirciema street 16, Rīga, szf rsu[pnkts]lv | ||||||||
| Study Course Planning | |||||||||
| Full-Time - Semester No.1 | |||||||||
| Lectures (count) | 8 | Lecture Length (academic hours) | 2 | Total Contact Hours of Lectures | 16 | ||||
| Classes (count) | 6 | Class Length (academic hours) | 2 | Total Contact Hours of Classes | 12 | ||||
| Total Contact Hours | 28 | ||||||||
| Part-Time - Semester No.1 | |||||||||
| Lectures (count) | 4 | Lecture Length (academic hours) | 2 | Total Contact Hours of Lectures | 8 | ||||
| Classes (count) | 3 | Class Length (academic hours) | 2 | Total Contact Hours of Classes | 6 | ||||
| Total Contact Hours | 14 | ||||||||
| Study course description | |||||||||
| Preliminary Knowledge: | Macroeconomics, Microeconomics, Finance, Business management. | ||||||||
| Objective: | To familiarise students with financial markets, the concept of securities market and its economic substance. The course includes topics of the basic principles of financial and securities market, its structure, types of securities and the types of securities markets. | ||||||||
| Topic Layout (Full-Time) | |||||||||
| No. | Topic | Type of Implementation | Number | Venue | |||||
| 1 | Financing forms: share; internal; debt financing and innovative financing forms. Substance of the financial market and the role of securities market in it. Basic functions of financial market. Concept and economic substance of securities market, securities market as a means of attraction and placement of financial resources and capital. Advantages of the securities market in attraction of financial resources and capital. Comparison of participation capital and debt capital. Portfolio constraints | Lectures | 1.00 | E-Studies platform | |||||
| 2 | Securities exchange participants (issuers of securities, investors). Securities market infrastructure (securities market brokers, stock exchanges, payment and storage systems, supervising authorities of securities market). Securities market in Europe. | Lectures | 1.00 | E-Studies platform | |||||
| 3 | Analysing the initial portfolios. | Classes | 1.00 | other | |||||
| 4 | Stock markets. The big stock exchanges – NASDAQ, NYSE, etc. The substance of stocks, their types, categories, advantages, factors affecting their value. Stock issue. Stock market indices. Capitalisation. Bear and bull strategies. Application of equities as an incentive for the staff. | Lectures | 1.00 | auditorium | |||||
| 5 | Stock analysis and assessment methods. Fundamental analysis. Analysis indicators (EPS, P/E, P/B). Determining the optimal price. W. Buffett method. Dividend discounting model. Model of the remaining income. Technical analysis. Curves, Japanese candlestick charts, trends, trend changing figures, moving means. Other financial asset evaluation theories. | Lectures | 1.00 | auditorium | |||||
| 6 | Share evaluation. Analysing portfolios. | Classes | 2.00 | other | |||||
| 7 | Debt Securities. Government and Corporate Debt Securities. Mortgage Backed Securities. Risk and Ratings. | Lectures | 1.00 | E-Studies platform | |||||
| 8 | Factors affecting debt securities, price calculation. Basic principles of calculating interest and profitability for debt securities. YTM. Impact of the market interest rate on the price of debt security. Analysis of advantages and disadvantages of debt securities. Comparison with other capital attraction options. | Lectures | 1.00 | auditorium | |||||
| 9 | Financial market game (simulation). | Classes | 1.00 | other | |||||
| 10 | Mutual funds. Fund-of-funds concept. Specific funds. Advantages and disadvantages of funds. Pension funds. Commodities. Other financial instruments. | Lectures | 1.00 | E-Studies platform | |||||
| 11 | Securities portfolios, creating them. Risk and profitability. Volatility. Portfolio theory. CAPM. | Lectures | 1.00 | E-Studies platform | |||||
| 12 | Securities in stock exchanges of EU/EEA countries. Practical creation of an investment portfolio. Applying various investment strategies and analysis measures. Portfolio presentations. | Classes | 2.00 | auditorium | |||||
| Topic Layout (Part-Time) | |||||||||
| No. | Topic | Type of Implementation | Number | Venue | |||||
| 1 | Financing forms: share; internal; debt financing and innovative financing forms. Substance of the financial market and the role of securities market in it. Basic functions of financial market. Concept and economic substance of securities market, securities market as a means of attraction and placement of financial resources and capital. Advantages of the securities market in attraction of financial resources and capital. Comparison of participation capital and debt capital. Portfolio constraints | Lectures | 0.50 | E-Studies platform | |||||
| 2 | Securities exchange participants (issuers of securities, investors). Securities market infrastructure (securities market brokers, stock exchanges, payment and storage systems, supervising authorities of securities market). Securities market in Europe. | Lectures | 0.50 | E-Studies platform | |||||
| 3 | Analysing the initial portfolios. | Classes | 0.50 | other | |||||
| 4 | Stock markets. The big stock exchanges – NASDAQ, NYSE, etc. The substance of stocks, their types, categories, advantages, factors affecting their value. Stock issue. Stock market indices. Capitalisation. Bear and bull strategies. Application of equities as an incentive for the staff. | Lectures | 0.50 | auditorium | |||||
| 5 | Stock analysis and assessment methods. Fundamental analysis. Analysis indicators (EPS, P/E, P/B). Determining the optimal price. W. Buffett method. Dividend discounting model. Model of the remaining income. Technical analysis. Curves, Japanese candlestick charts, trends, trend changing figures, moving means. Other financial asset evaluation theories. | Lectures | 0.50 | auditorium | |||||
| 6 | Share evaluation. Analysing portfolios. | Classes | 1.00 | other | |||||
| 7 | Debt Securities. Government and Corporate Debt Securities. Mortgage Backed Securities. Risk and Ratings. | Lectures | 0.50 | E-Studies platform | |||||
| 8 | Factors affecting debt securities, price calculation. Basic principles of calculating interest and profitability for debt securities. YTM. Impact of the market interest rate on the price of debt security. Analysis of advantages and disadvantages of debt securities. Comparison with other capital attraction options. | Lectures | 0.50 | auditorium | |||||
| 9 | Financial market game (simulation). | Classes | 0.50 | other | |||||
| 10 | Mutual funds. Fund-of-funds concept. Specific funds. Advantages and disadvantages of funds. Pension funds. Commodities. Other financial instruments. | Lectures | 0.50 | E-Studies platform | |||||
| 11 | Securities portfolios, creating them. Risk and profitability. Volatility. Portfolio theory. CAPM. | Lectures | 0.50 | E-Studies platform | |||||
| 12 | Securities in stock exchanges of EU/EEA countries. Practical creation of an investment portfolio. Applying various investment strategies and analysis measures. Portfolio presentations. | Classes | 1.00 | auditorium | |||||
| Assessment | |||||||||
| Unaided Work: | Individual work – report (portfolio), summaries (homeworks), presentation. | ||||||||
| Assessment Criteria: | Accumulated grade and an exam. Percentage of the accumulated grade: attendance of classes (10%); activity in seminars (15%); homeworks (15%); individual work (20%) and exam (35%). | ||||||||
| Final Examination (Full-Time): | Exam (Written) | ||||||||
| Final Examination (Part-Time): | Exam (Written) | ||||||||
| Learning Outcomes | |||||||||
| Knowledge: | Students gain knowledge about business financing possibilities, financial markets, their infrastructure, types of securities, methods of determining their value and analysing them. Gain understanding about financial and analytical indicators in the securities market, and portfolio construction issues. | ||||||||
| Skills: | Being competent in securities markets and ability to analyse their structure and companies; to understand financial and analytical indicators; gain basic skills in securities trading and financial instrument portfolio building. | ||||||||
| Competencies: | Ability to assess financial and analytical indicators. Ability to make calculations related to securities and to develop investment concepts, to attract financing to a company and to plan a company’s investments into the securities market. | ||||||||
| Bibliography | |||||||||
| No. | Reference | ||||||||
| Required Reading | |||||||||
| 1 | Dempsey M. Investment Analysis: An Introduction to Portfolio Theory and Management. Routledge, 2020 | ||||||||
| 2 | Linton D. E. Foundations of Investment Management: Mastering Financial Markets, Asset Classes, and Investment Strategies. J. Ross Publishing, 2020 | ||||||||
| 3 | Bodie Z., Kane A., Marcus A. J. Essentials of Investments. 11th Ed. McGraw-Hill Education, 2019 | ||||||||
| 4 | Mishkin F. S., Stanley G. E. Financial Markets and Institutions. 9th ed. Pearson Ed., 2018 | ||||||||
| Additional Reading | |||||||||
| 1 | Introduction to Portfolio Theory | ||||||||
| 2 | Iyiola O., Munirat Y., Nwufo C. I. The Modern Portfolio Theory as an Investment Decision Tool. Journal of Accounting and Taxation, 2012, 19–28. | ||||||||
| Other Information Sources | |||||||||
| 1 | List of European Stock exchanges. | ||||||||
| 2 | Nasdaq baltic | ||||||||
| 3 | Nasdaq nordic | ||||||||
| 4 | Euronext | ||||||||
| 5 | London stock exchange | ||||||||
| 6 | Deutsche Börse Group | ||||||||
| 7 | Six group | ||||||||
